BC Court rules in favour of First Majestic
TORONTO (miningweekly.com) – The Supreme Court of British Columbia (BC) this week ruled in favour of Mexico-focused silver producer First Majestic after lengthy litigation against Hector Davila Santos (not related to the company's COO Ramon Davila) and Minera Arroyo Del Agua, which subsequently became Minerales y Minas Mexicana.
In November 2007, First Majestic and its subsidiary First Silver Reserve (FSR) started an action against Davila, the previous director, president and CEO of FSR, alleging, among other things, that while Davila held the company positions, he violated his fiduciary duty to FSR and that subsequently, through Minera Arroyo, he acquired the Bolanos mine from Grupo Mexico for his own personal interest.
FSR became a wholly owned subsidiary of First Majestic in September 2006.
The Honourable Justice Myers concluded that the Bolanos opportunity belonged to FSR and that Davila did in fact breach his fiduciary duty by acquiring the Bolanos mine.
Justice Myers calculated in his ruling a net opportunity loss in favour of First Majestic of $89.6-million, after reducing an initial amount of $111-million for the post-acquisition investments of Davila at the Bolanos mine and applying a 15% reduction contingency.
The $89.6-million judgment did not include prejudgment interest or legal costs, of which a portion was recoverable, nor had the court ruled on Davila's counterclaim for, among other things, interest charges on the about C$14.25-million that had been held in Davila's lawyer's trust account since July 2009.
Justice Myers was still to rule on these issues, together with other outstanding issues, on a date yet to be scheduled. Under BC law, Davila had 30 days to appeal the judgment.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established on 1 March, 2000, by Barries Barnard, Advanced Fire Suppression Technologies (AFST) and the Advanced Group stands as Sub-Saharan...
VISIT SHOWROOM
Virtual Gas Network supplies compressed natural gas via a virtual gas distribution network.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
