Four companies under the same umbrella can’t be sued as one

|Canadian Employment Law Today

Danilkewich v. Calco Equipment Sask. Inc. (2002), 22 C.C.E.L. (3d) 71 (Sask. Q.B.)

A dismissed employee, Terrance Danilkewich, started an action for breach of contract against not only his former employer but three other companies as well. He alleged the four companies were in reality one entity and, therefore, the other three companies could be held liable for the wrongful conduct of his former employer.

The court described the relationship between the four companies as follows: The four corporations were incorporated in three different provinces. Three of the companies carried on the same business and they all had one common shareholder and director who was the directing mind of all the corporations. The court found there was commercial interaction amongst the three corporations and they had, on occasion, provided support to one another.