This appeal concerns a class action by General Motors of Canada Limited (GMCL) dealers against the law firm Cassels Brock & Blackwell LLP for breach of fiduciary and contractual duties.
During the 2009 financial crisis, Cassels represented three potentially conflicting clients: the Saturn Dealers, Industry Canada (regarding GMCL bailout financing), and GMCL dealers generally regarding a potential restructuring or insolvency.
The trial judge found that Cassels breached its duties by failing to disclose the conflict of interest with Industry Canada to the dealers and by failing to provide proper advice regarding Wind-Down Agreements (WDAs) offered by GMCL.
The dealers lost the opportunity to negotiate collectively for better compensation.
The Court of Appeal upheld the liability findings but reduced the damages award from $45 million to approximately $41 million (subject to further calculation regarding class composition).
