In 2012, an investor commenced an action against the defendant, WFG Securities of Canada Inc. ("WFG") for negligence, misrepresentation, breach of fiduciary duty and deceit, based on representations that she alleged induced her to participate in an investment scheme that ultimately failed and caused her financial loss. In 2008, the plaintiff was introduced to WFG by an accountant who advised her that WFG could borrow money on the plaintiff's behalf for investment purposes and generate an 8% return on the monies. In June 2008, the plaintiff agreed to borrow $100,000 from a trust company. By November 2008, the plaintiff noticed the balance of the investment loan had increased but there was a corresponding decrease in the value of her investments. In January 2009, a WFG representative informed the plaintiff that they had failed to get the best interest rate deal and would assist her to fix it. By mid-2009, the plaintiff began to pay off the interest with her own money. The plaintiff admitted on discovery that by 2009 she has sustained substantial financial loss as a result of the scheme.
WFG brought a motion for summary judgment on the basis that the claim was commenced after the requisite limitation period. The motions judge agreed holding that "the plaintiff, by her own admission, knew of the loss that had occurred in November 2008. On that date, she was also fully aware of the material facts forming the foundation of her claim".
The Court of Appeal agreed with the motion judge's decision by holding that from May 2009 "she firmly held the view that the appellants had wrongfully cheated her of her money". Read the Court of Appeal decision here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
