Questrade Inc. v. Gu, 2011 ONSC 4106

JudgeLederer, J.
CourtSuperior Court of Justice of Ontario (Canada)
Case DateJune 15, 2011
JurisdictionOntario
Citations2011 ONSC 4106;(2011), 282 O.A.C. 283 (DC)

Questrade Inc. v. Gu (2011), 282 O.A.C. 283 (DC)

MLB headnote and full text

Temp. Cite: [2011] O.A.C. TBEd. JL.036

Questrade Inc. (plaintiff/respondent) v. Ying Gu (defendant/appellant)

Ying Gu (plaintiff by defendant's claim/appellant) v. Questrade Inc. (defendant to defendant's claim/respondent)

(410/10; 2011 ONSC 4106)

Indexed As: Questrade Inc. v. Gu

Court of Ontario

Superior Court of Justice

Divisional Court

Lederer, J.

July 5, 2011.

Summary:

The defendant Gu and her husband were two of the three owners of an account with Questrade Inc., a discount brokerage. The account was one which allowed trading on margin (i.e., on money borrowed from Questrade). Questrade sued Gu in Small Claims Court for $10,000, pre-judgment interest and costs. Gu brought a $25,000 defendant's claim.

The Ontario Small Claims Court allowed Questrade's claim and dismissed Gu's claim. Gu appealed.

The Ontario Divisional Court, per Lederer, J., dismissed the appeal.

Brokers - Topic 2210

Employment and authority - Authority - Stockbrokers - Sales - The defendant Gu and her husband were two of the three owners of an account with Questrade Inc., a discount brokerage - The account was one which allowed trading on margin (i.e., on money borrowed from Questrade) - The account was under margin - Questrade liquidated the account, but Gu and her colleagues continued to be indebted to Questrade for $10,569.06 - At the same time, the liquidation resulted in a $53,984 loss to Gu and her colleagues - Questrade sued Gu in Small Claims Court for $10,000, pre-judgment interest and costs - Gu brought a $25,000 defendant's claim - The Small Claims Court allowed Questrade's claim and dismissed Gu's claim - Gu appealed - The Ontario Divisional Court, per Lederer, J., held, inter alia, that any failure by Questrade to make the margin call earlier than it did could not form the basis for this appeal - See paragraph 6.

Brokers - Topic 2210

Employment and authority - Authority - Stockbrokers - Sales - The defendant Gu and her husband were two of the three owners of an account with Questrade Inc., a discount brokerage - The account was one which allowed trading on margin (i.e., on money borrowed from Questrade) - The account was under margin - Questrade liquidated the account, but Gu and her colleagues continued to be indebted to Questrade for $10,569.06 - At the same time, the liquidation resulted in a $53,984 loss to Gu and her colleagues - Questrade sued Gu in Small Claims Court for $10,000, pre-judgment interest and costs - Gu brought a $25,000 defendant's claim - The Small Claims Court allowed Questrade's claim and dismissed Gu's claim - Gu appealed - The Ontario Divisional Court, per Lederer, J., held, inter alia, that there was a legal and binding agreement that permitted Questrade to make the margin call - Included within the standard agreement made at the time a new account was opened, was the right of the brokerage to liquidate the account in order to maintain the minimum requirements of the margin portion of the account - See paragraphs 14 to 19.

Brokers - Topic 2210

Employment and authority - Authority - Stockbrokers - Sales - The defendant Gu and her husband were two of the three owners of an account with Questrade Inc., a discount brokerage - The account was one which allowed trading on margin (i.e., on money borrowed from Questrade) - The account was under margin - Questrade liquidated the account, but Gu and her colleagues continued to be indebted to Questrade for $10,569.06 - At the same time, the liquidation resulted in a $53,984 loss to Gu and her colleagues - Questrade sued Gu in Small Claims Court for $10,000, pre-judgment interest and costs - Gu brought a $25,000 defendant's claim - The Small Claims Court allowed Questrade's claim and dismissed Gu's claim - Gu appealed - At issue, inter alia, was whether Questrade had the authority to liquidate the account on August 1, 2007 having indicated to Gu by email that she had until August 2, 2007 to respond to the margin call - The Ontario Divisional Court, per Lederer, J., held that it did - The agreement allowing the broker to liquidate the account without notice prevailed over the e-mail - The brokerage was not compelled to sit and wait as its losses climbed - See paragraphs 20 to 26.

Cases Noticed:

Paciorka v. TD Waterhouse, [2007] O.T.C. Uned. F99; 2007 CarswellOnt 4717 (Sup. Ct.), refd to. [para. 22].

Janic v. TD Waterhouse Investor Services (Canada) Inc., [2001] O.T.C. Uned. 773; 2001 CarswellOnt 1268 (Sup. Ct.), refd to. [para. 23].

RBC Dominion Securities Inc. v. DeBora, [1991] O.J. No. 1863 (Gen. Div.), refd to. [para. 23].

Counsel:

Lawrence J. Horowitz, for the plaintiff/respondent;

Ying Gu, for the defendant/appellant;

Ying Gu, for the plaintiff by defendant's claim/appellant;

Lawrence J. Horowitz, for the defendant to defendant's claim/respondent.

This appeal was heard on June 15, 2011, by Lederer, J., of the Ontario Divisional Court, who delivered the following decision on July 5, 2011.

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6 practice notes
  • Court Of Appeal Summaries (January 31-February 4, 2022)
    • Canada
    • Mondaq Canada
    • February 8, 2022
    ...2022 ONCA 101 Keywords: Contracts, Debtor-Creditor, Margin Trading Accounts, Civil Procedure, Summary Judgment, Questrade Inc. v. Gu, 2011 ONSC 4106, Jack Ganz Consulting Ltd. v. Recipe Unlimited Corporation, 2021 ONCA 907 Asghar v. Toronto (City), 2022 ONCA 98 Keywords: Civil Procedure, St......
  • Court Of Appeal Summaries (January 31-February 4, 2022)
    • Canada
    • Mondaq Canada
    • February 8, 2022
    ...2022 ONCA 101 Keywords: Contracts, Debtor-Creditor, Margin Trading Accounts, Civil Procedure, Summary Judgment, Questrade Inc. v. Gu, 2011 ONSC 4106, Jack Ganz Consulting Ltd. v. Recipe Unlimited Corporation, 2021 ONCA 907 Asghar v. Toronto (City), 2022 ONCA 98 Keywords: Civil Procedure, St......
  • COURT OF APPEAL SUMMARIES (JANUARY 31-FEBRUARY 4, 2022)
    • Canada
    • LexBlog Canada
    • February 6, 2022
    ...2022 ONCA 101 Keywords: Contracts, Debtor-Creditor, Margin Trading Accounts, Civil Procedure, Summary Judgment, Questrade Inc. v. Gu, 2011 ONSC 4106, Jack Ganz Consulting Ltd. v. Recipe Unlimited Corporation, 2021 ONCA 907 Asghar v. Toronto (City), 2022 ONCA 98 Keywords: Civil Procedure, S......
  • Susin v. TD Waterhouse Discount Brokerage, 2020 ONSC 959
    • Canada
    • Superior Court of Justice of Ontario (Canada)
    • February 12, 2020
    ...For the reasons I discuss below, (i) the Margin Agreement, (ii) the decision in Questrade Inc. v. Gu, 2011 ONSC 4106 (“Gu”), and (iii) the application of the doctrine of waiver itself, all preclude such a claim by John. [78]         ......
  • Request a trial to view additional results
2 cases
  • Susin v. TD Waterhouse Discount Brokerage, 2020 ONSC 959
    • Canada
    • Superior Court of Justice of Ontario (Canada)
    • February 12, 2020
    ...For the reasons I discuss below, (i) the Margin Agreement, (ii) the decision in Questrade Inc. v. Gu, 2011 ONSC 4106 (“Gu”), and (iii) the application of the doctrine of waiver itself, all preclude such a claim by John. [78]         ......
  • Susin Estate v. TD Waterhouse Discount Brokerage (TD Waterhouse Canada Inc.),
    • Canada
    • Court of Appeal (Ontario)
    • February 4, 2022
    ...John’s action. The motion judge concluded that “(i) the Margin Agreement, (ii) the decision in Questrade Inc. v. Gu, 2011 ONSC 4106 (“Gu”), and (iii) the application of the doctrine of waiver itself, all preclude such a claim by John”. [9]   ......
4 firm's commentaries
  • Court Of Appeal Summaries (January 31-February 4, 2022)
    • Canada
    • Mondaq Canada
    • February 8, 2022
    ...2022 ONCA 101 Keywords: Contracts, Debtor-Creditor, Margin Trading Accounts, Civil Procedure, Summary Judgment, Questrade Inc. v. Gu, 2011 ONSC 4106, Jack Ganz Consulting Ltd. v. Recipe Unlimited Corporation, 2021 ONCA 907 Asghar v. Toronto (City), 2022 ONCA 98 Keywords: Civil Procedure, St......
  • Court Of Appeal Summaries (January 31-February 4, 2022)
    • Canada
    • Mondaq Canada
    • February 8, 2022
    ...2022 ONCA 101 Keywords: Contracts, Debtor-Creditor, Margin Trading Accounts, Civil Procedure, Summary Judgment, Questrade Inc. v. Gu, 2011 ONSC 4106, Jack Ganz Consulting Ltd. v. Recipe Unlimited Corporation, 2021 ONCA 907 Asghar v. Toronto (City), 2022 ONCA 98 Keywords: Civil Procedure, St......
  • COURT OF APPEAL SUMMARIES (JANUARY 31-FEBRUARY 4, 2022)
    • Canada
    • LexBlog Canada
    • February 6, 2022
    ...2022 ONCA 101 Keywords: Contracts, Debtor-Creditor, Margin Trading Accounts, Civil Procedure, Summary Judgment, Questrade Inc. v. Gu, 2011 ONSC 4106, Jack Ganz Consulting Ltd. v. Recipe Unlimited Corporation, 2021 ONCA 907 Asghar v. Toronto (City), 2022 ONCA 98 Keywords: Civil Procedure, S......
  • Mind Your Margins: Appellate Courts Uphold Securities Brokers' Rights To Strictly Enforce Margin Agreements
    • Canada
    • Mondaq Canada
    • April 7, 2022
    ...101. 2. Ibid. at para. 13. 3. Ibid. at para. 16. 4. Richardson Wealth Limited v. Andrew Hirsch, 2022 QCCA 148. 5. Questrade Inc. v. Gu, 2011 ONSC 4106 at para. 24 (C.A.); also R.B.C. Dominion Securities Inc. v. DeBora, [1991] O.J. 1863 (Ont. Gen. 6. Wastech Services Ltd. v. Greater Vancouve......

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