Reuben Rosenblatt

The plaintiff corporation, facing severe financial difficulties and mortgage default, sold a 75-acre property to the defendant developer in a 'no cash' deal, taking back mortgages on two other properties owned by the developer.

The plaintiff subsequently defaulted on loans secured by those mortgages and lost the properties.

The plaintiff sued the developer for fraud, conspiracy, and misrepresentation, alleging the developer inflated the values of the mortgaged properties.

The plaintiff also sued its real estate lawyer for professional negligence.

The Superior Court of Justice dismissed all claims, finding no evidence of fraud or conspiracy, and concluding that the lawyer met the standard of care given the plaintiff's dire financial situation and complete lack of bargaining power.

The appellant lawyer appealed a decision of the Law Society Tribunal Appeal Division, which upheld the Hearing Division's finding that she knowingly participated in mortgage fraud in six real estate transactions and revoked her licence.

The appellant argued the Hearing Division lacked jurisdiction to render a decision with only two members, improperly relied on an expert report, and unreasonably found she had the requisite intent.

The Divisional Court dismissed the appeal, finding that the Statutory Powers Procedure Act permitted the two remaining members to complete the hearing, the expert report was properly used to understand red flags of fraud, and the finding of knowing participation in fraud was reasonable.