McDougall v. Knutsen
Donald Geoffrey McDougall
Law Firm / Organization
Watson Goepel LLP
Lawyer(s)

Timothy D. Goepel

0838697 B.C. Ltd.
Law Firm / Organization
Watson Goepel LLP
Lawyer(s)

Timothy D. Goepel

Scott Walker Knutsen
Anik Gagnon
Cobra Integrated Systems Ltd.
KKBL No. 617 Ventures Ltd.
614844 B.C. Ltd.

Background:
Donald Geoffrey McDougall and his company, 0838697 B.C. Ltd., appealed a decision related to a breakdown in their business relationship with Scott Walker Knutsen, Anik Gagnon, and Cobra Integrated Systems Ltd. The dispute centered on a closely-held corporation, Cobra Integrated Systems Ltd., and the failure to implement a Corporate Reorganization.

Legal Issues:
The key legal issue was whether the conduct of Scott Walker Knutsen and others was oppressive under section 227 of the Business Corporations Act (BCA). The appellants argued that the respondents' actions breached their reasonable expectations and that the planned Corporate Reorganization should have been completed. Additionally, the case involved a wrongful dismissal claim, which was linked to the broader corporate dispute.

Court's Findings:
The Court of Appeal for British Columbia upheld the trial court’s decision, concluding that the conduct of the respondents was not oppressive. The court found that no reasonable expectations were established by the appellants that were breached. The Corporate Reorganization did not proceed due to external factors, and the dismissal of Donald McDougall’s employment was deemed to be in the best interests of the company.

Costs and Award:
The appeal was dismissed, and no additional remedies were granted beyond the trial court's award of $98,075.00 for wrongful dismissal to the appellant, Geoff Co.

Conclusion:
The court upheld the trial’s decision to award $98,075.00 in damages for wrongful dismissal to the appellant, Donald Geoffrey McDougall, but dismissed his appeal, making the respondents the successful party in the appeal.

Court of Appeals for British Columbia
CA48934
Corporate & commercial law
Respondent