The appellants sought production of trust ledgers of the respondents' law firms and unredacted bank statements in a civil fraud action, arguing that the records were necessary to trace funds and determine if the respondents breached Mareva injunctions.
The courts below held that the trust ledgers were presumptively privileged, the presumption was not rebutted, and the crime-fraud exception did not apply.
The Divisional Court also remitted the issue of privilege over the unredacted bank statements to the motion judge.
The Court of Appeal dismissed the appeal, holding that the trust ledgers were presumptively privileged and the presumption was not rebutted.
The Court also held that while the crime-fraud exception could apply in a civil action for fraud or breach of a court order, the appellants failed to establish a prima facie case for its application.
The Court found no error in remitting the bank statements issue to the motion judge.
