Jeffrey Leon

The plaintiffs in a class action regarding a charitable donation tax shelter brought a motion to compel the defendants' former legal counsel to produce their client files and answer questions refused during discovery.

The plaintiffs argued that solicitor-client privilege was vitiated by the fraud exception, or alternatively, waived through disclosure of a tax opinion and sharing of information with third-party consultants.

The court dismissed the motion, holding that the fraud exception applies only to criminal conduct, not civil fraud.

The court further held that disclosure of the stand-alone tax opinion did not waive privilege over the entire file, and that communications shared with third-party consultants were protected by common interest privilege and the functional extension of solicitor-client privilege.

The plaintiff railway company sought interlocutory injunctive relief after former employees joined a direct competitor and allegedly downloaded and circulated confidential commercial information, including customer lists and revenue data, to solicit the plaintiff’s clients.

The parties agreed to an injunction preserving confidential information and restricting its use, but disputed whether an independent court-appointed monitor should oversee compliance with the order.

The court found the defendants had initially fallen short in complying with an earlier undertaking but had taken substantial remedial steps, including forensic searches, employee discipline, and written directives prohibiting use of the information.

The court concluded that appointing a monitor with broad investigative and supervisory powers would be overly intrusive into the defendant corporation’s business operations.

The court held that the contempt power and the existing order sufficiently protected the plaintiff’s interests.

The plaintiffs and defendants were all victims of a Ponzi scheme orchestrated by an investment advisor.

The plaintiffs, who were late entrants to the scheme, provided bank drafts directly payable to the defendants, who were early entrants, under the mistaken belief they were investing in legitimate bridge financing.

When the scheme collapsed, the plaintiffs sued the defendants for the return of their money, alleging unjust enrichment and mistake of fact.

The plaintiffs brought a consolidated motion for summary judgment.

The court dismissed the motion, finding genuine issues for trial regarding whether the defendants were unjustly enriched or if the payments were made under a mistake of fact, and noting that the novel legal issues and ongoing bankruptcy proceedings required a full trial.

The plaintiffs sought court approval of a settlement agreement resolving complex litigation and related bankruptcy proceedings arising from the collapse of Lehman Brothers.

The dispute concerned ownership and recovery of investment fund assets held by the prime broker at the time of its insolvency, including securities subject to re-hypothecation and claims advanced in multiple jurisdictions.

The court considered the fairness and reasonableness of the settlement, including its impact on investors and the risks and delays associated with continued litigation and cross-border enforcement.

Relying on principles reflected in the Bankruptcy and Insolvency Act and the court’s jurisdiction under the Courts of Justice Act, the court concluded that the compromise was fair and reasonable.

The court approved the settlement and issued vesting orders in relation to assets conveyed under the agreement.