The plaintiff brought a motion to certify a class action against a trust company that acted as the trustee for registered savings accounts through which class members invested in syndicated mortgages.
The syndicated mortgages, promoted by a third-party developer, failed, resulting in significant losses.
The plaintiff alleged the trust company breached trust, fiduciary, contractual, and common law duties by failing to ensure the mortgages were fully secured and qualified investments under the Income Tax Act.
The court dismissed the certification motion, finding it plain and obvious that the pleadings disclosed no reasonable cause of action, as the trust company did not undertake the alleged gatekeeper duties.
The court also found the proposed omnibus class action failed the common issues, preferable procedure, and representative plaintiff criteria.
