Brumer v. Gunn, (1982) 18 Man.R.(2d) 155 (QB)

• Judge: Morse, J.
• Court: Court of Queen's Bench of Manitoba (Canada)
• Case Date: October 25, 1982
• Jurisdiction: Manitoba
• Citations: (1982), 18 Man.R.(2d) 155 (QB)

Brumer v. Gunn (1982), 18 Man.R.(2d) 155 (QB)

MLB headnote and full text

Brumer v. Gunn

(Suit No. 2516/79)

Indexed As: Brumer v. Gunn

Manitoba Court of Queen's Bench

Morse, J.

October 25, 1982.

Summary:

A client brought an action against her lawyer to recover damages equal to the amount she lost by way of business loans made on her lawyer's advice.

The Manitoba Court of Queen's Bench allowed the action.

Barristers and Solicitors - Topic 1614

Relationship with client - Conflict of interest - Acting for several parties - The Manitoba Court of Queen's Bench held that a lawyer was in a conflict of interest situation where he was advising one client to invest funds in a business which was also a client - The business subsequently failed and the funds were never recovered - See paragraph 25.

Barristers and Solicitors - Topic 2586

Negligence - Particular negligent acts - Negligent advice - A lawyer advised his client, a 49 year old widow of modest means, to invest a substantial sum of her savings in a business, also a client - When the business encountered financial difficulties, the lawyer did not advise the widow to reduce or eliminate her loans - The Manitoba Court of Queen's Bench discussed the duty of a lawyer holding himself out as a competent investment counsellor and held that the lawyer was negligent in permitting the widow to leave her money in the failing business - See paragraphs 1 to 35.

Interest - Topic 5008

Interest as damages - General principles - Prejudgment interest - A client brought an action against her lawyer to recover damages equal to the amount she lost by way of business loans made on her lawyer's advice - The Manitoba Court of Queen's Bench discussed when prejudgment interest can be awarded and held the amount owing by the lawyer was ascertainable before the action so the client could recover prejudgment interest - See paragraphs 38 to 41.

Interest - Topic 5302

Interest as damages - Interest on payment of money or debt withheld - Improper withholding - What constitutes - A client brought an action against her lawyer to recover damages equal to the amount lost by way of business loans made on the lawyer's advice - The Manitoba Court of Queen's Bench held that payment of the amount owing was improperly withheld from the date on which it was ascertained - See paragraphs 41 to 43.

Interest - Topic 5315

Interest as damages - Interest on payment of money or debt withheld - Date of commencement - A client brought an action against her lawyer to recover damages equal to the amount she lost by way of business loans made on the lawyer's advice - The Manitoba Court of Queen's Bench held that the client could recover interest from the date the amount loaned was ascertained - See paragraph 44.

Cases Noticed:

Eckstein v. Law Society of Manitoba, [1981] 1 W.W.R. 566; 6 Man.R.(2d) 161, revd. [1981] 3 W.W.R. 171; 7 Man.R.(2d) 415, consd. [para. 34].

Eckstein v. Law Society of Manitoba, [1981] 3 W.W.R. 171; 7 Man.R.(2d) 415, reving. [1981] 1 W.W.R. 566; 6 Man.R.(2d) 161, consd. [para. 34].

Chambers v. Leech et al., [1976] 4 W.W.R. 568 (Man. C.A.), refd to. [para. 38].

Kernested et al. v. Desorcy, [1979] 1 W.W.R. 512 (Man. C.A.), refd to. [para. 39].

Lamont v. Pederson, [1981] 7 Sask.R. 18, at 33 (Sask. C.A.), refd to. [para. 39].

Authors and Works Noticed:

Manitoba Law Reform Commission, Report on Prejudgment Compensation on Money Awards: Alternatives to Interest, January 4, 1982 [para. 43].

Counsel:

R.L. Tapper and J.M. Scurfield, for plaintiff;

R.J. Scott, Q.C., and D. Abra, for defendant.

This case was heard by MORSE, J., of the Manitoba Court of Queen's Bench, who on October 25, 1982, delivered the following decision: