2 total
Action against discount broker dismissed; broker complied with KYC obligations when opening corporate account.
The plaintiffs sued a discount broker, Interactive Brokers Canada Inc., in negligence after a trader they authorized to manage their corporate account lost over $1.8 million.
The plaintiffs alleged the broker breached its 'know your client' and 'gatekeeper' obligations by failing to investigate 'red flags' regarding the trader's status as an unregistered investment advisor.
The court dismissed the action, finding the broker complied with all regulatory requirements for opening a corporate account and was entitled to rely on the corporate resolution granting the trader authority.
The court also noted that even if liability were found, the plaintiffs failed to mitigate their damages after discovering the initial losses.
Appeal dismissed; Ontario has jurisdiction simpliciter as the loan contract was made in Ontario.
The appellant, a resident of the United States, appealed the dismissal of her motion to dismiss or stay an action on a debt for lack of jurisdiction.
The respondent, an Ontario resident, sued the appellant for repayment of a loan.
The Court of Appeal dismissed the appeal, finding that the contract was made in Ontario when the respondent received telephone confirmation of the acceptance of her offer to lend funds.
This established a presumptive connecting factor for jurisdiction simpliciter under the Van Breda framework, which the appellant failed to rebut.
