Third Party: Forest Practices Board
APPEAL NO. 2005-FOR-015(a)

This appeal involved a contravention determination and administrative penalty of $45,000 for damage to karst features, made against the sole director of the corporate licensee. The appeal issue was in regard to when a director or officer of a licensee company is liable for a contravention by the licensee. The Board made submissions supporting the determination and liability of Mr. Smurthwaite as the sole director and officer of the company that held the timber sale licence. The FAC decided that there must be a finding of contravention by a company before its director can be liable for a penalty, and that a director or officer must be given clear notice of the dual nature of the proceedings before the opportunity to be heard takes place. Although this aspect of notice is not a mandatory statutory requirement, it is a requirement of procedural fairness. The FAC found that the lack of notice that Mr. Smurthwaite could face personal liability was not cured by the FAC’s hearing.

Appeal allowed.

FAC Decision: http://www.fac.gov.bc.ca/forestPracCode/2005for015a.pdf