Militza Boljevic

The plaintiffs, representing a class of donors to a failed charitable tax shelter program, brought an action for professional negligence against the law firms and valuation firm that provided services to the program's promoter.

The professional defendants moved for summary judgment, arguing the claims were statute-barred and that they owed no duty of care to the non-client class members.

The court held the claims were not statute-barred, as the limitation period did not begin to run until the Tax Court declared the program a sham.

The court granted summary judgment to the law firms, finding they explicitly limited their undertakings to their client and owed no duty of care to the class members.

However, the court denied summary judgment to the valuation firm, finding a triable issue existed regarding whether it undertook a duty to the class members by authorizing its valuation report to be used in their tax appeals.

The Court of Appeal for Ontario heard an appeal and cross-appeal stemming from a wrongful dismissal judgment.

The appellant, Davide Giacomodonato, appealed the damages award, contending the trial judge erred by applying the second employment contract instead of the first.

The court dismissed his appeal, affirming the trial judge's finding of fresh consideration for the second contract, including a $40,000 payment and additional vacation time.

The respondents, PearTree Securities Inc. and PearTree Financial Services Ltd., cross-appealed the costs award.

Their motion for leave to appeal costs was dismissed, as the court found no error in principle in the trial judge's discretionary costs award, which was justified by the respondents' litigation conduct.