The appellants obtained loans from the respondent financial institutions to purchase mutual funds based on the advice of their financial advisors.
When the investments failed to perform, the appellants faced margin calls and suffered losses.
They sued the financial institutions, alleging negligence and breach of fiduciary duty for failing to advise them of the risks associated with the loans.
The motion judge granted summary judgment dismissing the claims against the financial institutions.
The Court of Appeal upheld the decision, finding that the relationship between a bank and its customer is generally that of debtor and creditor, and there were no special circumstances or exceptional relationships to give rise to a duty of care or a fiduciary duty to advise the borrowers.
