The appellant, an investor who lost money when a registered mortgage broker used funds for unauthorized purposes, brought a class action against the Registrar of Mortgage Brokers for negligence.
The appellant alleged the Registrar should have acted sooner to suspend the broker's licence.
The Supreme Court of Canada dismissed the appeal, holding that the Registrar did not owe a private law duty of care to the investors.
Applying the Anns test, the Court found insufficient proximity between the Registrar and the investors, as the governing statute imposed a duty to the public as a whole, not to individual investors.
Furthermore, policy considerations, including the spectre of indeterminate liability and the quasi-judicial nature of the Registrar's decisions, negated any prima facie duty of care.