Commercial Litigation and Dispute Resolution
Investment Dealer Negligence/Securities Litigation
Lerners has led the way in creating the law related to investment dealer negligence. Beginning with Varcoe v. Sterling, the seminal case establishing the liability of investment dealers to their clients in negligence, in which we acted as trial and appellate counsel, and continuing with Zraik v. Levesque Securities Inc., an important decision with respect to the quantification of damages for investment loss, Lerners' team of lawyers has paved the way in this area of law. Lawyers and clients from across Ontario call on Lerners to ensure that these cases are brought to a successful conclusion, even if it means we need to create new law where none existed before.
Lerners has established an extremely strong reputation in securities matters generally. From class proceedings on behalf of investors (such as Kerr et al. v. Danier Leather Inc. et al., the first trial decision to consider the application of the civil liability provisions in section 130 of the Ontario Securities Act and Royal Trust Corp. v. Fisherman et al., the first settlement of a securities class action) to securities actions on behalf of issuers or their directors (such as Field Resources Ltd. v. Bell Canada International Inc. et al., in which we act for the directors of the issuer in relation to claims of oppression and breach of contract relating to the conversion of debentures into common shares), Lerners' lawyers, led by senior partner Earl A. Cherniak, who is listed by LEXPERT as an expert in this area, have the expertise to defend or advance complicated securities matters.
Cases:
Varcoe v. Sterling
Lerners acted for the successful plaintiffs in this seminal case establishing the liability of investment dealers to their clients in negligence. We acted as trial and appellate counsel.
Lerners acted for the successful plaintiffs at trial and the Court of Appeal in this important case with respect to the quantification of damages for investment loss.
In this class action based upon allegations of misrepresentation brought pursuant to section 130 of the Ontario Securities Act, we acted for the plaintiff shareholders of YBM Magnex International, Inc., who purchased their shares pursuant to a prospectus. The defendants were YBM's former directors, officers, auditors, securities counsel and underwriters of the prospectus financing. Other issues included whether one of the defendant's rights to a fair criminal trial in the United States under the Fifth Amendment of the United States Constitution would be prejudiced by Ontario civil proceedings.
This was the first major securities class action settlement in Canada.
In this class action brought by Bell Canada International Inc.'s former debenture holders for breach of contract and oppression, we act for the defendant company directors.
We were successful trial counsel for the plaintiff shareholders of Danier Leather Inc. in the first case in Canada to consider civil liability under section 130 of the Ontario Securities Act for misrepresentation contained in a prospectus. The Court of Appeal rendered its decision in December 2005. Leave is now being sought to the Supreme Court of Canada on the basis that the proposed appeal raises critical issues of national and public importance with respect to materiality and the business judgment rule in the interpretation of securities laws across Canada.
We acted for the successful institutional investor plaintiffs in these oil and gas prospectus misrepresentation cases.
