The appellants appealed a motion judge's decision dismissing their motion to compel the production of law firm trust ledgers and unredacted bank statements from the respondents.
The underlying action involves allegations of a massive international civil fraud.
The Divisional Court upheld the motion judge's finding that the law firm trust ledgers were presumptively privileged and that the appellants failed to rebut the presumption.
The Court also agreed that the 'future crimes and fraud' exception to solicitor-client privilege did not apply to civil fraud.
However, the Court allowed the appeal in part, finding that the motion judge erred in presuming privilege over redacted entries in non-law firm bank statements without requiring the respondents to prove the privilege claim.
The issue of the unredacted bank statements was remitted to the motion judge.