Moss v. Richardson Greenshields of Canada Ltd. and Davies, (1988) 53 Man.R.(2d) 117 (QB)

• Judge: Darichuk, J.
• Court: Court of Queen's Bench of Manitoba (Canada)
• Case Date: February 05, 1988
• Jurisdiction: Manitoba
• Citations: (1988), 53 Man.R.(2d) 117 (QB)

Moss v. Richardson Greenshields (1988), 53 Man.R.(2d) 117 (QB)

MLB headnote and full text

Danny Moss v. Richardson Greenshields of Canada Limited and Preston Davies

(Suit No. 86-01-14090)

Indexed As: Moss v. Richardson Greenshields of Canada Ltd. and Davies

Manitoba Court of Queen's Bench

Winnipeg Centre

Darichuk, J.

February 5, 1988.

Summary:

Moss allegedly suffered a loss when a stockbroker sold his options above their limit price due to a computer error. Moss commenced an action against the stockbrokerage firm and the account executive who handled his account.

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

Brokers - Topic 3092

Duties of broker to principal - Stock brokers - Gross negligence - A stock brokerage firm and a client executed an options trading agreement which, inter alia, limited the brokerage's liability to cases of gross negligence or wilful misconduct - Due to a computer failure, the account executive handling the account sold the client's options above their limit price - The client sued the brokerage and the account executive - The Manitoba Court of Queen's Bench held that the account executive was a party to the options agreement such that the exemption clause respecting gross negligence applied to him - The court then dismissed the client's action, holding that the account executive's conduct was not gross negligence.

Contracts - Topic 521

Parties - Who constitutes a party - General - A stockbrokerage firm and a client executed an options trading agreement which included, inter alia, a clause which limited the brokerage's liability to cases of gross negligence or wilful misconduct - The Manitoba Court of Queen's Bench held that the account executive who handled the client's options trading account was also a party to the contract such that the exemption clause respecting gross negligence applied to him.

Cases Noticed:

Scruttons Limited v. Midland Silicones Limited, [1962] 1 All E.R. 1, refd to. [para. 10].

Dyck v. Manitoba Snowmobile Association, [1982] 4 W.W.R. 318; 15 Man.R.(2d) 404, refd to. [para. 10].

Greenwood Shopping Plaza Ltd. v. Beattie, [1980] 2 S.C.R. 228; 39 N.S.R.(2d) 119; 71 A.P.R. 119; 32 N.R. 163; 10 B.L.R. 234; 111 D.L.R.(3d) 257, refd to. [para. 10].

Canadian General Electric Company Limited v. Pickford & Black Limited, [1971] S.C.R. 41; 2 N.S.R.(2d) 497; 14 D.L.R.(3d) 372, consd. [paras. 10, 11].

R.H. Deacon and Co. Ltd. v. Varga, 30 D.L.R.(3d) 653, refd to. [para. 15].

Counsel:

David G. Hill, for the plaintiff;

Michael T. Green, for the defendants.

This case was heard before Darichuk, J., of the Manitoba Court of Queen's Bench, who delivered the following decision on February 5, 1988.