Law360 Canada (April 29, 2022, 6:41 AM EDT) -- Action by CN for damages and punitive damages for breach of fiduciary duty, deceit, breach of contract, breach of confidence, conspiracy, and conversion. The defendant Holmes, a former employee of CN, had authority within CN to hire contractors and approve invoices. Unbeknownst to CN, Holmes created several corporations of which he was the beneficial shareholder and caused CN to hire them. CN alleged that in many cases, the work for which the Holmes Companies billed could have been obtained at a lower rate elsewhere, the Holmes Companies billed CN for work that was never done, and that Holmes took scrap rail owned by CN and sold it for his personal benefit through one of his corporations. CN also alleged that Holmes diverted the benefits of the scheme to the Scott Holmes Living Trust, Jennifer Flynn, his common law spouse, and the Jennifer Flynn Living Trust. In addition to monetary relief, CN sought accounting and tracing remedies and the imposition of a constructive trust in favour of CN over the property of Holmes, Flynn, and their personal trusts. Flynn, when she became a director and officer of Holmes’ companies, began using her birth name, signing all corporate documents as Parisien. She signed numerous corporate documents in which she was attesting to having attended meetings with various individuals who also co-signed the documents. The meetings never occurred, the signatures of her co-signatories were forged, and one co-signatory was a fictitious person. Holmes admitted incorporating several companies, causing CN to hire those companies, and approving invoices in their favour but denied the phantom billing and conversion allegations. Holmes argued CN failed to establish compensable harm because his companies charged CN less than other companies would have charged....