M. Vaillancourt

The proposed interveners, former counsel to the appellants, brought a motion for leave to intervene as added parties in an appeal from the Ontario Securities Commission.

The appellants alleged ineffective assistance of counsel and sought a term prohibiting the interveners from appealing any future order made on the appeal.

The court declined to impose the restriction, holding that interveners added as parties under Rule 13.01(1) should generally enjoy the same rights of appeal as any other party regarding issues that directly affect them.

The appellants, former officers of Coventree Inc., appealed a decision of the Ontario Securities Commission finding that they authorized, permitted, or acquiesced in Coventree's failure to disclose material changes in its business, contrary to section 75 of the Securities Act.

The Commission had found that changes to credit rating criteria and a subsequent disruption in the asset-backed commercial paper market constituted material changes requiring immediate disclosure.

The Divisional Court applied a reasonableness standard of review, concluding that the Commission applied the correct legal tests, based its findings on sufficient evidence, and reasonably exercised its public interest jurisdiction in sanctioning the appellants.

The appeals were dismissed.