The plaintiff, an experienced investor, invested in special warrants and special shares of two private companies on the advice of his broker.
The broker failed to warn him of the risks associated with these investments, including the risk that the planned initial public offerings might never take place.
The plaintiff lost his entire investment and sued the broker and her firm for negligence.
The trial judge found the defendants liable but reduced the damages by 50% due to the plaintiff's contributory negligence in signing subscription agreements without reading them.
The defendants appealed.
The Court of Appeal dismissed the appeal, upholding the trial judge's findings that the broker breached her duty to warn and that her misrepresentation precluded the defendants from relying on the subscription agreements to raise an estoppel.