The respondent disputed fees charged by the appellant accountants for services rendered in respect of three transactions, including the structuring of a butterfly transaction.
A fees action was settled and the parties executed a broadly worded release in 2008 referring to all claims existing up to that time arising from any and all services provided through to the end of 2007.
In 2011, the respondent learned that the butterfly transaction could be subject to an income tax liability of more than $1 million instead of being tax free as intended.
The respondent sued for damages for negligence.
The motion judge and Divisional Court dismissed the appellant's motion for summary judgment, finding the release did not bar the claim because the negligence only came to light in 2011.
The Court of Appeal allowed the appeal, holding that the release clearly and unequivocally covered all claims arising from services provided through December 31, 2007, including unknown claims.