Canada Case Law

Surefire Dividend Capture, LP v. National Liability & Fire Insurance Company (Berkshire Hathaway Specialty Insurance)

Court

Court of Appeal for Ontario

Under a deferential standard of review the trial judge permissibly interpreted the Bond: SDC failed to show Smith was an "Employee" of SDC as defined in the Bond so Insuring Agreement A(1) did not cover SDC's claimed losses; Rider 13 made BRC a separate insured Subsidiary whose losses could have been claimed by or on its behalf, but SDC did not pursue a claim on BRC's behalf; and the funds transferred became property of BRC so there was no "Theft of Customer Property" under A(4). Appeal dismissed and costs awarded to Berkshire.

Source excerpt

• Fidelity bond
• Contract interpretation
• Definition of employee
• Theft of customer property
• Subsidiary designation in an insurance policy
• Alter ego/agency issues

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Salomon v. Matte‑Thompson

Court

Supreme Court of Canada

The Supreme Court held a lawyer liable for repeated investment recommendations, reassurances and conflict-of-interest conduct that contributed to clients’ Ponzi-scheme losses.

• Duty to advise
• Duty of loyalty (conflict of interest)
• Standard of appellate review (palpable and overriding error)
• Causation
• Liability for referrals
• Appellate-review

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