Anger et al. v. Berkshire Investment Group Inc. et al., (2001) 141 O.A.C. 301 (CA)

• Judge: McMurtry, C.J.O., Catzman and Feldman, JJ.A.
• Court: Court of Appeal (Ontario)
• Case Date: November 27, 2000
• Jurisdiction: Ontario
• Citations: (2001), 141 O.A.C. 301 (CA)

Anger v. Berkshire Inv. Group Inc. (2001), 141 O.A.C. 301 (CA)

MLB headnote and full text

Temp. Cite: [2001] O.A.C. TBEd. FE.045

John Anger, Bonnie Anger, Peter Anton, Victoria Anton, David Baughman, Rosemary Baughman, Theodora C. Bouris, William G. Bouris, Franca Britton, Russell Britton, David Blackwell, Wendy Blackwell, Catherine Connors-Lamos, William L. David, Murray Demaine, June Demaine, Susan T. Dixon, Fred Eedy, Katherine Eedy, Paul Harris, Debbie Harris, Roy Hunter, Wendy Hunter, Thomas Lamos, Paul Lepine, Rodney H. Lovell, Mona V. Lovell, Antonio Michienzi, Maria Michienzi, Don Nutchey, Bahadar S. Purewal, Resham K. Purewal, Robert Schultz, Karen Schultz, Murray J. Shain, Michael L. Smith, Terri J. Smith, Douglas Sprague, Barbara Sprague, Roy Stephens, Larry Sullivan and Margaret Sullivan (plaintiffs/appellants) v. Berkshire Investment Group Inc., Berkshire Securities Inc., Dino Delellis, Anna Pacifico, Kris Astaphan, Michael Lee-Chin, Frank Dakos, Johnathan P. Wellum, National Trust Company, Jamie Hodgins, Egerton Associates Ltd., Lansink, Best & McIver Limited, Anthony Best, Knightsbridge London Limited Partnership 1993, Lynwood Place Limited Partnership, Sherwood Gate Limited Partnership, Sovereign Limited Partnership, Sovereign 1994 Limited Partnership, Sovereign Second 1994 Limited Partnership, Promittere Capital Group, Promittere Securities Limited, Equion Securities Canada Limited, Robert J. Thiessen, Neal Pallett and Townsend (defendants/respondents)

(C33746)

Indexed As: Anger et al. v. Berkshire Investment Group Inc. et al.

Ontario Court of Appeal

McMurtry, C.J.O., Catzman and Feldman, JJ.A.

February 9, 2001.

Summary:

The plaintiffs sued the defendants for their respective roles in persuading the plaintiffs to make improvident investments in certain limited partnerships. The plaintiffs alleged that some of the defendants, in their capaci­ties as directors and officers and compliance officers of the defendant Berkshire In­vestment Group Inc., owed the plaintiffs a duty of care. These defendants moved to have the actions struck out against them as disclosing no reasonable cause of action.

The Ontario Superior Court allowed the application. The plaintiffs appealed.

The Ontario Court of Appeal allowed the appeal and set aside the order to strike the claims.

Editor's note: for a related case see [1999] O.T.C. Uned. A90 (S.C.).

Practice - Topic 2230

Pleadings - Striking out pleadings - Grounds - Failure to disclose a cause of action or defence - The plaintiffs sued the defendants for their respective roles in persuading the plaintiffs to make improvi­dent investments in certain limited partner­ships - The plaintiffs alleged that some of the defendants, in their capacities as direc­tors and officers and compliance officers of the defendant Berkshire Investment Group Inc., owed the plaintiffs a duty of care - A motions judge allowed these defendants' motion to have the actions struck out against them as disclosing no reasonable cause of action - The Ontario Court of Appeal allowed the plaintiffs' appeal and set aside the order to strike - This was not a case where the law was clear in the defendants' favour - Whether the defendants owed the plaintiffs a duty of care would depend on an application of the Anns/Kamloops test to the facts of the case based on the evidence.

Cases Noticed:

Budd v. Gentra Inc. et al. (1998), 111 O.A.C. 288 (C.A.), refd to. [para. 7].

Hercules Management Ltd. et al. v. Ernst & Young et al., [1997] 2 S.C.R. 165; 211 N.R. 352; 115 Man.R.(2d) 241; 139 W.A.C. 241, refd to. [para. 7].

Hunt v. Carey Canada Inc. - see Hunt v. T & N plc. et al.

Hunt v. T & N plc. et al., [1990] 2 S.C.R. 959; 117 N.R. 321, refd to. [para. 8].

ADGA Systems International Ltd. v. Val­com Ltd. et al. (1999), 117 O.A.C. 39; 43 O.R.(3d) 101 (C.A.), refd to. [para. 11].

Montreal Trust Co. of Canada et al. v. Scotia McLeod Inc. et al. (1995), 87 O.A.C. 129; 26 O.R.(3d) 481 (C.A.), leave to appeal dismissed (1996), 205 N.R. 314; 95 O.A.C. 399 (S.C.C.), refd to. [para. 11].

Meditrust Healthcare Inc. v. Shoppers Drug Mart et al. (1999), 124 O.A.C. 137 (C.A.), leave to appeal dismissed (1999), 254 N.R. 343 (S.C.C.), refd to. [para. 11].

NBD Bank Canada v. Dofasco Inc. et al. (1999), 127 O.A.C. 338; 46 O.R.(3d) 514 (C.A.), leave to appeal dismissed (2000), 254 N.R. 400 (S.C.C.), refd to. [para. 11].

460635 Ontario Ltd. v. 1002953 Ontario Inc. et al. (1999), 127 O.A.C. 48 (C.A.), refd to. [para. 11].

Immocreek Corp. v. Pretiosa Enterprises Ltd. et al. (2000), 131 O.A.C. 358 (C.A.), refd to. [para. 11].

Anns v. Merton London Borough Council, [1978] A.C. 728 (H.L.), refd to. [para. 12].

Nielsen v. Kamloops (City) and Hughes, [1984] 2 S.C.R. 2; 54 N.R. 1; [1984] 5 W.W.R. 1; 29 C.C.L.T. 97; 8 C.L.R. 1; 10 D.L.R.(4th) 641, refd to. [para. 12].

Counsel:

Anne Marie Frauts and Andrien P. Camer­on, for the appellants;

Frank J.C. Newbould, Q.C., and Aaron A. Blumenfeld, for the respondents.

This appeal was heard on November 27, 2000, before McMurtry, C.J.O., Catzman and Feldman, JJ.A., of the Ontario Court of Appeal. Feldman, J.A., delivered the fol­lowing judgment for the Court of Appeal on February 9, 2001.