Azim Hussain

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.

The Supreme Court considered whether provisions of the Civil Code of Quebec limiting family patrimony, compensatory allowance, partnership of acquests, and spousal support to married and civil union spouses infringed s. 15(1) of the Charter by excluding de facto spouses.

A 5-4 majority on s. 15(1) found the exclusion violated equality rights based on marital status.

However, the Chief Justice found the infringement justified under s. 1, joining the four judges who found no s. 15(1) violation, resulting in a 5-4 decision upholding the constitutionality of the impugned provisions.

The dissent would have struck down some or all of the provisions as unjustified discrimination against de facto spouses.