The plaintiff self-regulatory organization brought a motion for summary judgment to recover $80,000 in costs ordered by its disciplinary hearing panel against a former registrant.
The defendant had previously been found guilty of misconduct involving undisclosed financial interests in client accounts and was permanently banned and fined by the disciplinary panel.
Appeals to the securities regulator and the Divisional Court were dismissed, and the defendant failed to pay the ordered costs.
The court held that membership in the regulatory organization created a contractual obligation to comply with its by-laws, rules, and disciplinary orders, including costs awards.
The court concluded that the costs order was enforceable through a civil action for breach of contract.
