No cause of action for third party claims against solicitors when negligent advice given about mitigation, Ontario Court of Appeal rules
In its decision released last Fall in Davy Estate v. CIBC World Markets Inc. , the Ontario Court of Appeal affirmed an Ontario Superior Court order striking out a third party claim in which the defendant had tried to sue the plaintiff’s lawyer. The third party claim had alleged that the plaintiff’s lawyer had given the plaintiff bad advice on the mitigation of her damages. In addition to finding that the third party claim against the plaintiff’s lawyer could not succeed at law, the Court of Appeal also cited policy reasons against permitting one party to sue another party’s lawyer for alleged negligence; noting that such claims undermine a lawyer’s loyalty to their client and invade the sanctity of the lawyer-client relationship. [more]
Business judgment rule does not trump unanimous shareholders’ agreement
Directors of a corporation cannot invoke the business judgment rule to justify decisions that violate a unanimous shareholders’ agreement, the Ontario Divisional Court held recently. [more]
January 2010 Commercial Litigation Update
An update on significant commercial litigation decisions released recently in Ontario.
Contributers: Kenneth Dekker, Jennifer Dyck, Christian Farahat, Sonny Ingram, and Michael Osborne. An update on significant commercial litigation decisions released recently in Ontario. [more]
Statements to Securities Commission are protected by absolute privilege
In his decision this Fall in Fraleigh v. RBC Dominion Securities, Ontario Superior Court Justice Newbould summarily dismissed an action brought by John Fraleigh against RBC Dominion Securities and one of its employees. The action was brought for allegedly false statements and testimony given before the Ontario Securities Commission claiming unusual trading activity in his RBC trading accounts – information that was later published in media reports. In dismissing Fraleigh’s action, Justice Newbould found that the claim arose entirely from testimony and other related communications to the OSC; communications that are protected by absolute privilege. [more]
Oppression does not guarantee relief
In Hu v. Sung, Superior Court Justice David Brown confronted the question of what to do when a shareholder in a private corporation has wrongfully excluded another from the affairs of the company, but by the time of trial the company has ceased operations, has not turned a profit and there is no evidence the offending shareholder personally benefited from the oppression. [more]
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