Michelle Wong

Following an appeal, the Court of Appeal for Ontario issued a costs endorsement.

The appellant was awarded $20,000 in costs, subject to a reduction for an unsuccessful appeal regarding two U.S. companies and the unsatisfactory nature of the statement of claim.

The two U.S. respondents were awarded costs of $5,856.53 and $500, respectively.

The appellant, who had been discharged from bankruptcy, was denied credit because the respondent credit reporting agencies allegedly included statute-barred debts in his credit report contrary to the Consumer Reporting Act.

The appellant brought a proposed class action in negligence.

The motion judge struck the claim, finding policy reasons against recognizing a duty of care.

The Court of Appeal allowed the appeal against the Canadian respondents, holding that a prima facie duty of care exists based on proximity and foreseeability, analogous to negligent misrepresentation, and that policy considerations do not make it plain and obvious that the claim should be struck at this stage.

The claims against the American parent companies were struck for failing to plead sufficient material facts.

The appellants appealed a trial judgment holding them liable for losses in a short sale margin account.

The primary debtor opened the account and the co-appellant guaranteed it.

The appellants argued the investment dealer owed a fiduciary duty to the guarantor and breached a duty of full disclosure by failing to disclose that the primary debtor had not posted the required margin security.

The Court of Appeal dismissed the appeal, upholding the trial judge's findings that there was no fiduciary relationship and that the non-disclosure was not material, as the guarantor knew the account was in a loss position and that he was securing that loss.