The appellants appealed a Small Claims Court decision finding them liable for negligence in placing an investment for the respondent.
The respondent, an inexperienced investor, had given funds to the individual appellant to invest in a high-risk bond on her behalf.
The Divisional Court allowed the appeal with respect to the corporate appellant, finding no evidence of vicarious liability.
However, the court dismissed the appeal for the individual appellant, holding that as a gratuitous agent, he owed a duty of care which he breached by failing to heed warnings in the offering memorandum and proceeding with the investment.