The Rhône v The Peter AB Widener is a Supreme Court of Canada decision on the "directing mind" principle of corporate liability. The Court held that an individual must have "governing authority over the management and operation" of the corporation to be considered a "directing mind". Background While moored in the Port of Montreal, the Rhône was struck by the Peter Widener, a barge that was being towed by four tugboats (the Ohio in front, the South Carolina and the Ste. Marie II on either side, and the Rival at the rear). Of the four tugs, only two, the South Carolina and the Ohio, were owned by Great Lakes Towing Company. Captain Kelch, on the tug Ohio, acted as de facto master of the flotilla. The owners of the Rhône sued the barge and the tug owners for damaging their ship, and North Central Maritime Corporation, the owner of the barge, sued Great Lakes for breach of its towage contract. Great Lakes denied liability in both actions and counterclaimed for limitation of liability pursuant to provisions of the Canada Shipping Act. At the Trial Division of the Federal Court of Canada, the judge apportioned 80 percent of the liability to Great Lakes and 20 percent to North Central in the first action (based on the negligence of the respective captains), and found Great Lakes to be totally at fault in the second action. Great Lakes appealed both decisions to the Federal Court of Appeal, and North Central also cross‑appealed the trial judge's finding of fault against the Widener. In its ruling, the FCA: confirmed the finding of negligence against Captain Kelch on the Ohio and against the Widener but rejected the assessment of fault against the South Carolina, noting that any errors it had made had been pursuant to orders from Captain Kelch on the Ohio and not any negligence on the part of those responsible for her navigation maintained the trial judge's overall finding with respect to both the negligence and the apportionment of liability as between Great Lakes and North Central agreed with the trial judge that Captain Kelch was a directing mind of Great Lakes, at least for the purpose of carrying out Great Lakes' obligations in relation to the tow of the Widener. As such, it found Great Lakes was not entitled to limit its liability since the damage did not occur "without its actual fault