A lawyer referred his clients to a financial advisor who was his personal friend, and over a period of four years repeatedly endorsed and encouraged the clients to invest with the advisor's firm.
The investments turned out to be part of a Ponzi scheme and the clients lost over $5 million.
The trial judge dismissed the professional liability claim, finding no causal link between the lawyer's faults and the clients' losses.
The Quebec Court of Appeal reversed, finding the trial judge had assessed the evidence through a distorting lens leading to palpable and overriding errors.
The Supreme Court dismissed the appeal, holding that the Court of Appeal correctly identified palpable and overriding errors and that the lawyer's breaches of his duty to advise and duty of loyalty were a true cause of the clients' losses; the intervening fraud did not break the chain of causation.
