Laurie Dillon, former co-president of the Carp Agricultural Society (CAS), was implicated in a conflict of interest and fiduciary duty breach due to her family's involvement in the sale of a property bequeathed to CAS. After internal disputes and her membership revocation, Dillon sought legal relief.
Legal Issues:
Dillon challenged the process of her membership revocation, alleging a breach of natural justice, and disputed the claims of conflict of interest and breach of fiduciary duty.
Court’s Analysis and Decision:
The court found that the CAS Board breached natural justice in revoking Dillon's membership, citing procedural flaws and lack of transparency.
It ruled that Dillon was not in a conflict of interest, as the transactions in question did not directly involve CAS, and no material contract or transaction necessitated her recusal or declaration of conflict.
The court also found that Dillon did not breach her fidiciary duties to CAS, as her actions did not result in personal gain at the expense of the society.
Outcome:
Dillon's membership in CAS was reinstated, and the CAS Board’s decision to revoke it was declared null and void.
The court dismissed the cross-application by CAS, which alleged Dillon breached her fiduciary duty.
The matter of costs was left to be resolved between the parties or determined through further submissions.
