Environmental Liability in Canada: Company Directors and Officers

Posted by on Jul 22, 2026 in Blog, Environmental Compliance | 0 comments

 

In our April 7, 2026, blog, we included a report about a company and its directors that were fined $1 million for environmental violations.  We have covered this trend of holding officers and directors personally responsible for environmental violations in previous blogs as well.

Just over a dozen years ago, corporate officers at Northstar were held liable for the TCE (Trichloroethylene) plume in Cambridge, Ontario.  In a 2013 blog, the law firm Suskinds wrote, “Ten corporate officers and directors have paid $4.75 million to be released from the Northstar Canada cleanup order, even though the Ministry of the Environment admits that none of them were at fault for causing the contamination.”

Recent Case Where a Director/Officer is Held Liable for an Environmental Offence

A March 12, 2026, blog post by Blakes discussed another case confirming director and officer liability for environmental offences.

Mr. Mossman (in R. v. Mossman) was charged with various offences under the Environmental Management Act (EMA) and the Fisheries Act in relation to Banks Island Gold Ltd.’s (BIG) Yellow Giant mine (Mine).  The charges included offences related to discharges of mine waste into the environment, discharging substances above permitted amounts, constructing or operating unauthorized works in a stream, and failing to report.  Mr. Mossman was a director, president, and chief operating officer of BIG and the mine manager.

Mr. Mossman was found guilty of breaching the Metal and Diamond Mining Effluent Regulations and discharging substances above the permit limits.  On appeal, Mr. Mossman argued that knowledge of the circumstances surrounding the non-compliance was a requirement for finding secondary liability.  The Court of Appeal rejected Mr. Mossman’s position.

People sitting in a board room

This trend of holding senior officers liable for environmental violations, and how best to protect yourself and your company, is something you may want to discuss with your legal counsel (image purchased from Shutterstock).

What is Secondary Liability?

According to Blakes, “‘secondary liability’ offences are strict liability offences, meaning that the defence of due diligence continues to apply.”  Further, Blakes states that “The secondary liability provisions provide that directors and officers of a corporation who ‘directed,’ ‘authorized,’ ‘permitted’ or ‘acquiesced’ in the commission of an offence also commit the offence, regardless of whether the corporation is convicted.”

See the court documents R. v. Mossman, 2026 BCCA 75 (CanLII).

Summary of Conclusions

As this is a legal matter, we look to the legal community and industry for their conclusions on this growing environmental liability concern.

Blakes:  “Due diligence remains the most common and complete defence to environmental offences.  Directors and officers of companies with environmental compliance obligations should ensure there are adequate systems in place to ensure environmental compliance and prevent the commission of an offence.”

McCarthy Tetrault:  “R. v. Mossman confirms that secondary liability provisions in environmental legislation are designed to reach beyond corporations and attach personal responsibility to those who control regulated activities.  For directors and officers in the mining sector, the decision reinforces that due diligence and proactive oversight are not merely best practices — they are often the primary means of avoiding personal criminal exposure.”

Lawson Lundell:  “The decision is consistent with recent trends we are seeing in enforcement across many regulated industries, such as mining, workers’ compensation, and environmental industries, where regulators are increasingly bringing charges against or imposing administrative monetary penalties on both a company and its officers.”

Canadian Mining:  “The ruling reflects courts’ increasing willingness to hold corporate leaders personally accountable for environmental damage, marking a shift from traditional approaches that primarily targeted companies rather than individuals.  Mining industry associations are reviewing the decision’s implications for executive governance practices and compliance protocols.”

This trend of holding senior officers liable for environmental violations, and how best to protect yourself and your company, is something you may want to discuss with your legal counsel.

If you have questions about environmental compliance issues, contact Christopher Paré, P.Geo., at 519-948-7300, Ext 114.

Alan Hahn drafted this blog.  Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management.  He has worked in environmental management for more than 45 years.  He has written hundreds of blogs and articles.  His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.

Christopher Paré, P.Geo., reviewed this blog.  Chris is a senior geoscientist and manager of Dragun’s Windsor, Ontario, office.  Chris has more than 30 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning.  Chris is a frequent speaker, author, and expert witness.  See Chris’ bio

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