Monica Creery

Investors appealed the dismissal of their action against a law firm arising from a failed investment transaction in which they lost all monies advanced.

The appeal challenged findings that a prior judgment did not retroactively create a constructive trust, that no solicitor-client or fiduciary relationship existed between the solicitor and the investors, and that the solicitor had not breached any duty of care in relation to disclosure, mortgages, or fund disbursements.

The court held the factual findings were supported by the record, applied the fiduciary-duty indicia from Lac Minerals, and emphasized the conflict concerns in imposing fiduciary obligations on solicitors toward non-clients.

The appeal was dismissed with costs.

The appellants challenged the dismissal of their action against a solicitor and law firm arising from a failed investment in which investors lost all advanced funds.

The court rejected arguments that an earlier judgment established a trust relationship retroactively making the investors the solicitor's clients, and it upheld the trial judge's finding that no solicitor-client or fiduciary relationship existed.

Applying fiduciary duty indicia from appellate and Supreme Court authority, the court held the solicitor did not knowingly assist any breach by the promoter and did not breach any duty of care in relying on the promoter's assurances and corporate instructions.

The appeal was dismissed with costs.