David Lipkus

The plaintiffs sued their former lawyers for professional negligence and breach of contract arising from their representation in an underlying employment and corporate dispute.

The defendant lawyers brought motions for summary judgment to dismiss the claims.

The court granted the motions, finding no genuine issue for trial because the plaintiffs failed to adduce expert evidence on the standard of care, the evidence showed the plaintiffs were advised of the litigation risks, and there was no evidence that the lawyers' conduct caused the plaintiffs' alleged damages.

The defendants' motion for security for costs was returned to the Master after a successful appeal.

The appeal judge found the Master erred by failing to consider the quality of the plaintiff's only asset, a $100,000 cash deposit held by the defendants, which could easily be transferred out of Ontario once returned.

The Master ordered the defendants to return the deposit (less a $5,000 holdback) and ordered the plaintiff to immediately post $65,000 as security for costs, noting the plaintiff was a shell corporation and the cash would likely be transferred to its parent company.