The appellants represented a class of individuals victimized by a gold delivery fraud, having deposited funds into a solicitor's trust account.
They alleged the Law Society of Upper Canada breached a duty of care by failing to properly investigate and monitor the solicitor's trust account after being notified of irregularities.
The Supreme Court of Canada applied the Anns/Kamloops test and held that the Law Society did not owe a prima facie duty of care to the appellants, who were not clients but participants in a third-party business promotion.
The Court further noted that even if a duty existed, it would be negated by residual policy considerations and the statutory immunity provided under the Law Society Act.
