Paul Bates

The appellant, representative plaintiff in a proposed class action by unit holders of a real estate investment trust, appealed a motion judge's decision striking a knowing assistance claim against the respondents.

The claim alleged the respondents assisted a trustee in a breach of trust by concealing a conflict of interest in a property transaction.

The Court of Appeal allowed the appeal, finding the motions judge erred by failing to generously construe the pleadings and by concluding that the respondents' alleged suppression of information and active participation could not amount to knowing assistance.

The claim was found to be legally plausible.

The moving party brought a motion to quash an appeal from an order dismissing a motion for summary judgment.

The moving party conceded that the order did not preclude the responding party from advancing its arguments regarding s. 36(4) of the Competition Act or abuse of process as substantive defences at trial, and agreed not to advance an argument of res judicata.

Based on this concession that the order was interlocutory rather than final, the Court of Appeal quashed the appeal and awarded costs to the moving party.

The plaintiff sought leave under s. 138.8 of the Securities Act to pursue a secondary market misrepresentation class action arising from a mining company’s public restatement of prior financial statements related to “bill and hold” revenue recognition.

The court held that the explicit restatement acknowledging prior errors and internal control weaknesses created a reasonable possibility that the claim against the issuer could succeed at trial.

However, the individual officers and directors demonstrated a reasonable investigation defence through detailed evidence of their reliance on professional auditors and careful review of revenue recognition practices.

As a result, the statutory leave requirement was satisfied only as against the issuer company.

Leave was refused against the individual defendants.

In a bifurcated class action certification motion, the court considered whether unit-holders of a publicly traded real estate investment trust had pleaded viable causes of action arising from an allegedly conflicted property transaction that was later rescinded, causing a sharp drop in unit value.

The court held it was plain and obvious that officers and trustees did not owe fiduciary duties directly to unit-holders in the circumstances pleaded, and struck the fiduciary duty claims.

However, the breach of trust claims against certain trustees, grounded in the declaration of trust and the arguable ability of unit-holders to sue for dishonest or negligent breach of trustee obligations, were allowed to proceed.

The knowing assistance claim survived only against the former CEO, while similar claims against the vendor parties and their solicitors were struck for failure to plead active assistance in the trustee's breach.

Certification was dismissed as against the vendor parties and their solicitors.

The plaintiff, a unit-holder in a real estate investment trust (REIT), brought a proposed class action alleging that the REIT's former CEO and trustees breached their fiduciary duties and duties of trust by entering into an undisclosed related-party transaction.

On a bifurcated certification motion to determine if the pleadings disclosed a reasonable cause of action under s. 5(1)(a) of the Class Proceedings Act, the court struck the breach of fiduciary duty claims, finding that the defendants owed duties to the REIT but not to the unit-holders.

However, the court allowed the breach of trust claims against the trustees and the knowing assistance claim against the former CEO to proceed, while striking the knowing assistance claims against the vendor and the vendor's solicitors.

The appellants, three physicians, appealed a trial judgment finding them liable in negligence for the delayed diagnosis and death of a patient from infective endocarditis.

The trial judge found the emergency room resident breached the standard of care by failing to review a SARS form containing critical clinical history, and held the supervising physician vicariously liable.

The Court of Appeal allowed the appeal regarding the supervising physician, as vicarious liability was neither pleaded nor argued at trial.

However, the Court dismissed the appeal regarding the resident's breach of the standard of care and the trial judge's causation findings, concluding that the evidence supported the determination that a timely diagnosis would have prevented the patient's death.

The appellant intended to bring a class action for secondary market misrepresentation under the Securities Act against confidential sources quoted in a newspaper article about a leveraged buyout.

The appellant sought a Norwich order to compel the journalist and newspaper to disclose the sources' identities.

The Court of Appeal dismissed the appeal, holding that while the appellant met the threshold for a Norwich order, the respondents satisfied the Wigmore test for journalist-source privilege.

The public interest in protecting the confidential sources outweighed the public interest in the appellant's weak proposed action.