Plaintiff, Michelle Chanderpaul, was injured in a 2013 car accident involving an intoxicated driver, Aaron Ramrattan, who had been drinking at Throne Entertainment Venue, operated by Caesars Convention Centre Ltd.
Ceasars did not defend the lawsuit initially and was noted in default in 2015.
Additional claims were brought against R.K.S. Investments Ltd. (property owner) and its directors, Rajesh and Kanta Kaura, alleging they mismanaged assets to avoid liability and failed to ensure Caesars had adequate insurance.
Court’s Decision:
The claim against Caesars will proceed as there is a genuine issue for trial regarding overservice of alcohol to Mr. Ramrattan.
The claims against R.K.S. and the Kauras are dismissed for the following reasons:
The claim was not statute-barred, as Chanderpaul only discovered relevant facts in 2015.
However, there was no legal basis to pierce the corporate veil and impose liability on the Kauras personally.
The Kauras did not owe a duty of care to Chanderpaul to ensure Caesars had proper insurance.
Disgorgement of profits (waiver of tort) is not a standalone cause of action, per the Supreme Court of Canada ruling in Babstock (2020).
Partially successful for both sides. No final monetary damages were awarded at this stage.
Key Takeaways:
Bars/clubs can be held liable for overserving alcohol if it leads to harm.
Corporate directors generally cannot be held personally liable unless they engage in fraudulent or improper conduct directly linked to the claim.
A lack of insurance does not create a duty of care to third parties.
Disgorgement of profits cannot be claimed without proving damages.
