Jer et al. v. Samji et al., (2014) 353 B.C.A.C. 131 (CA)

• Judge: Garson, MacKenzie and Willcock, JJ.A.
• Court: Court of Appeal (British Columbia)
• Case Date: January 27, 2014
• Jurisdiction: British Columbia
• Citations: (2014), 353 B.C.A.C. 131 (CA);2014 BCCA 116

Jer v. Samji (2014), 353 B.C.A.C. 131 (CA);

    603 W.A.C. 131

MLB headnote and full text

Temp. Cite: [2014] B.C.A.C. TBEd. MR.037

In The Matter Of the Class Proceedings Act, R.S.B.C. 1996, c. 50

Lawrence Brian Jer, Jun Jer, and Janette Scott (respondents/plaintiffs) v. Royal Bank of Canada (appellant/defendant)

(CA041259)

Lawrence Brian Jer, Jun Jer and Janette Scott (respondents/plaintiffs) v. The Toronto-Dominion Bank (appellant/defendant) and Rashida Samji, Rashida Samji Notary Corporation, Samji & Assoc. Holdings Inc., Arvindbhai Bakorbhai Patel aka Arvin Patel, Coast Capital Savings Credit Union, Coast Capital Insurance Services Ltd., Royal Bank of Canada, Vancouver City Savings Credit Union, Worldsource Financial Management Inc., and Society of Notaries Public of British Columbia (respondents/defendants)

(CA041265)

Lawrence Brian Jer, Jun Jer, and Janette Scott (respondents/plaintiffs) v. Vancouver City Savings Credit Union (appellant/defendant) and Rashida Samji, Rashida Samji Notary Corporation, Samji & Assoc. Holdings Inc., Arvindbhai Bakorbhai Patel aka Arvin Patel, Coast Capital Savings Credit Union, Coast Capital Insurance Services Ltd., The Toronto-Dominion Bank, Royal Bank of Canada, and Worldsource Financial Management Inc. (defendants)

(CA041268)

Lawrence Brian Jer, Jun Jer, and Janette Scott (respondents/plaintiffs) v. Worldsource Financial Management Inc. (appellant/defendant) and Rashida Samji, Rashida Samji Notary Corporation, Samji & Assoc. Holdings Inc., Arvindbhai Bakorbhai Patel aka Arvin Patel, Coast Capital Savings Credit Union, Coast Capital Insurance Services Ltd., The Toronto-Dominion Bank, Royal Bank of Canada, and Vancouver City Savings Credit Union (respondents/defendants)

(CA041271)

Lawrence Brian Jer, Jun Jer, and Janette Scott (respondents/plaintiffs) v. Society of Notaries Public of British Columbia (appellant/defendant) and Rashida Samji, Rashida Samji Notary Corporation, Samji & Assoc. Holdings Inc., Arvindbhai Bakorbhai Patel aka Arvin Patel, Coast Capital Savings Credit Union, Coast Capital Insurance Services Ltd., The Toronto-Dominion Bank, Royal Bank of Canada, Vancouver City Savings Credit Union, and Worldsource Financial Management Inc. (respondents/defendants)

(CA041330; 2014 BCCA 116)

Indexed As: Jer et al. v. Samji et al.

British Columbia Court of Appeal

Garson, MacKenzie and Willcock, JJ.A.

March 28, 2014.

Summary:

The plaintiffs lost money in a fraudulent scheme (Ponzi scheme) operated by a notary public, who was a member of the Society of Notaries Public of British Columbia. The plaintiffs sought to have a class action certified against the notary public and a number of financial institutions.

The British Columbia Supreme Court, in a decision reported [2013] B.C.T.C. Uned. 1671, certified class proceedings respecting claims for negligent investigation of suspicious transactions, knowing assistance in breach of trust, negligence in processing of cheques and other trust instruments and conversion. The court listed 26 common issues. Four of the financial institutions appealed, seeking to set aside the certification, arguing that the pleadings failed to disclose a cause of action. The Society of Notaries Public also appealed, arguing that the chambers judge erred by determining that common issue 4 relating to whether the notary public received certain funds in her capacity as a Society member was appropriate for certification.

The British Columbia Court of Appeal allowed the appeal in part. The court held that the claim in conversion against the financial institutions was bound to fail and was therefore dismissed. The chambers judge made no error in exercising her discretion to certify issue 4.

Practice - Topic 209.3

Persons who can sue and be sued - Individuals and corporations - Status or standing - Class or representative actions - Certification - Considerations (incl. when class action appropriate) - See paragraphs 63 to 118.

Practice - Topic 209.7

Persons who can sue and be sued - Individuals and corporations - Status or standing - Class actions - Certification - Evidence and proof - See paragraphs 63 to 65.

Practice - Topic 209.9

Persons who can sue and be sued - Individuals and corporations - Status or standing - Class actions - Appeals - See paragraphs 54 to 62.

Practice - Topic 8825.4

Appeals - General principles - Duty of appeal court from decision of motions judge on class action certification motion - See paragraphs 54 to 62.

Cases Noticed:

Elms et al. v. Laurentian Bank of Canada et al. (2001), 155 B.C.A.C. 73; 254 W.A.C. 73; 2001 BCCA 429, refd to. [para. 28].

Eaton et al. v. HMS Financial Inc. et al. (2008), 458 A.R. 282; 2008 ABQB 631, refd to. [para. 30].

Pardhan v. Bank of Montreal, [2012] O.T.C. Uned. 2229; 2012 ONSC 2229, refd to. [para. 30].

601039 Ontario Ltd. et al. v. First Ontario Credit Union, [2009] O.T.C. Uned. 12 (Sup. Ct.), affd. [2009] O.A.C. Uned. 349; 2009 ONCA 527, refd to. [para. 30].

Citadel General Assurance Co. et al. v. Lloyds Bank of Canada et al., [1997] 3 S.C.R. 805; 219 N.R. 323; 206 A.R. 321; 156 W.A.C. 321, refd to. [para. 33].

373409 Alberta Ltd. et al. v. Bank of Montreal et al. (2002), 296 N.R. 244; 317 A.R. 349; 284 W.A.C. 349; 2002 SCC 81, refd to. [para. 40].

i Trade Finance Inc. v. Webworx Inc. (2011), 46 N.R. 166; 276 O.A.C. 141; 2011 SCC 26, refd to. [para. 40].

Midland Bank Ltd. v. Reckitt and others, [1933] A.C. 1 (H.L.), refd to. [para. 43].

Koubi v. Mazda Canada Inc. et al. (2012), 325 B.C.A.C. 172; 553 W.A.C. 172; 2012 BCCA 310, refd to. [para. 54].

Sander v. Sun Life Assurance Co. of Canada (2011), 298 B.C.A.C. 138; 505 W.A.C. 138; 2011 BCCA 3, refd to. [para. 54].

MacFarlane v. United Parcel Service Canada Ltd. (2010), 290 B.C.A.C. 45; 491 W.A.C. 45; 2010 BCCA 171, refd to. [para. 55].

Timberwolf Log Trading Ltd. v. British Columbia (Minister of Forests and Lands) et al. (2013), 335 B.C.A.C. 1; 573 W.A.C. 1; 2013 BCCA 24, refd to. [para. 58].

Director of Civil Forfeiture (B.C.) v. Flynn (2013), 334 B.C.A.C. 215; 572 W.A.C. 215; 2013 BCCA 91, refd to. [para. 58].

British Columbia v. Imperial Tobacco Canada Ltd. et al. (2011), 419 N.R. 1; 308 B.C.A.C. 1; 521 W.A.C. 1; 2011 SCC 42, refd to. [para. 58].

Harrington v. Dow Corning Corp. et al. (2000), 144 B.C.A.C. 51; 236 W.A.C. 51; 2000 BCCA 605, refd to. [para. 62].

Endean v. Canadian Red Cross Society et al. (1998), 106 B.C.A.C. 73; 172 W.A.C. 73; 157 D.L.R.(4th) 465 (C.A.), refd to. [para. 64].

Montagu's Settlement Trusts, Re, [1987] Ch. 264, refd to. [para. 72].

Air Canada v. M & L Travel Ltd., [1993] 3 S.C.R. 787; 159 N.R. 1; 67 O.A.C. 1, refd to. [para. 73].

Pardhan v. Bank of Montreal (2013), 303 O.A.C. 45; 2013 ONSC 355, refd to. [para. 82].

Boma Manufacturing Ltd. et al. v. Canadian Imperial Bank of Commerce, [1996] 3 S.C.R. 727; 203 N.R. 321; 82 B.C.A.C. 161; 133 W.A.C. 161, refd to. [para. 88].

Westboro Flooring and Décor Inc. v. Bank of Nova Scotia et al. (2004), 187 O.A.C. 357; 71 O.R.(3d) 723 (C.A.), refd to. [para. 92].

Statutes Noticed:

Class Proceedings Act, R.S.B.C. 1996, c. 50, sect. 4(1) [para. 27].

Authors and Works Noticed:

Bowers, Renzo Dee, A Treatise on the Law of Conversion (1917), s. 10 [para. 103].

Crawford, Bradley and Falconbridge, John D., Banking and Bills of Exchange (8th Ed. 1986), vol. 2, § 5003.6 [para. 95].

Waters, Donovan W.M., Gillen, Mark and Smith, Lionel, D., Waters' Law of Trusts in Canada (3rd Ed. 2005), p. 499 [para. 38].

Counsel:

Shayne P. Strukoff and Joanne Kuroyama, for the appellant, Royal Bank of Canada;

Lisa Martz and Alexandra Cocks, for the appellant, The Toronto-Dominion Bank;

Tracey M. Cohen and Gavin Cameron, for the appellant, Vancouver City Savings Credit Union;

Quang T. Duong, for the appellant, Society of Notaries Public of British Columbia;

Reidar M. Mogerman, Paul R. Bennett, Mathew P. Good and Naomi J. Kovak, for the respondents, Lawrence Brian Jer, Jun Jer and Janette Scott.

This appeal was heard in Vancouver, B.C., on January 27, 2014, before Garson, MacKenzie and Willcock, JJ.A., of the British Columbia Court of Appeal. The decision of the court was delivered by Willcock, J.A., on March 28, 2014.