Vendor master file blunders caused a $2.7M loss for a company whose insurer refused to cover most of the loss. At the root of the loss was the company's inadequate response to a phishing email. A few simple best practices could have prevented the loss.
Duty of care
Twelve years after the listeria outbreak at the heart of the case, the Supreme Court of Canada released a 5-4 decision in 1688782 Ontario Inc. v. Maple Leaf Foods Inc. et al., 2020 SCC 35, on November 6, 2020, ruling in favour of the defendant Maple Leaf Foods Inc. This is a consequential decision on economic loss in tort that confirms that there is no general right in tort protecting against the negligent or intentional infliction of pure economic loss in Canadian law, and that the circumstances in which pure economic loss may be recovered remain limited.
Given that establishing a duty of care is a prerequisite for establishing negligence, the Motion Judge in Foodinvest Limited v The Royal Bank of Canada granted RBC’s summary judgment motion.