Jesse R. Harper

The Cash Store Financial Services Inc. operated a payday loan business from 2002 until it sought CCAA protection in April 2014.

The company's estate sued its auditor KPMG LLP and counsel Cassels Brock & Blackwell LLP, alleging negligence and breach of fiduciary duty.

The plaintiff claimed that the defendants knew or ought to have known that Cash Store was misrepresenting its business as a broker when it was actually a direct lender bearing credit risk, and that this misrepresentation caused a deepening of insolvency from late 2011 until the CCAA filing in 2014.

The plaintiff sought damages ranging from $119 million to $177 million, plus disgorgement of legal fees.

The court dismissed all claims against both defendants, finding that Cash Store was properly characterized as a broker during the relevant period, that the defendants met applicable professional standards, and that the plaintiff failed to prove causation and damages.

The court also found the claims were statute-barred.

The applicants sought a declaration that a contingency fee agreement (CFA) executed in October 2019 applied only to the trial award and not to the increased award on appeal or to a subsequent settlement.

The respondent law firm claimed entitlement to a 30% contingency on both the appeal award and settlement.

The court found that the CFA was a trial retainer only, that no valid contingency fee agreement existed for the appeal (as any alleged oral agreement failed to comply with the Solicitors Act requirement that contingency fee agreements be in writing), and that the CFA did not apply to the settlement.

The court awarded the lawyers fees on a quantum meruit basis for their appeal work.

The appellants, small and mid-size businesses, appealed a class action decision regarding business interruption insurance claims stemming from the COVID-19 pandemic.

They sought coverage for revenue losses, arguing that the presence of SARS-CoV-2 or civil authority orders constituted "physical loss or damage" to their property under their insurance policies.

The Court of Appeal upheld the trial judge's finding that neither the virus's presence nor the civil authority orders met the "physical loss or damage" criteria for business interruption coverage.

The appeal was dismissed, and costs were awarded to the respondents.

The appellants appealed an order dismissing their action for delay against two respondents under Rule 48.14(7) of the Rules of Civil Procedure.

The motion judge found the appellants failed to provide an acceptable explanation for a four-year delay, rejecting their "wait and see" approach tied to another delayed action.

The Court of Appeal upheld the dismissal, affirming the motion judge's discretionary decision and reiterating that failure on the first part of the two-part test (acceptable explanation) is sufficient for dismissal.

The plaintiffs, representing the estate of a deceased real estate developer, brought a motion for further documentary discovery from the defendants, representing the estate of his deceased business partner.

The dispute centered on the calculation of a 'net profit share' under a 2003 agreement.

The plaintiffs sought extensive financial records to challenge the defendants' auditor's valuation, which found a net loss.

Applying the principle of proportionality under the Rules of Civil Procedure, the Master ordered partial production of the requested documents, limiting the scope to the specific project in dispute rather than all related projects.

The defendant brought a motion for security for costs against the plaintiffs in a breach of contract action regarding broadcasting airtime.

The court found that the corporate plaintiff had insufficient assets in Ontario and that the individual plaintiff's claim was frivolous and vexatious as he had no personal contract with the defendant.

The plaintiffs failed to establish impecuniosity due to inadequate financial disclosure and suspicious property transfers.

The court ordered the plaintiffs to post $75,000 in security for costs in installments.