Background
The decision related to a summary judgment motion brought in the
context of a class action by the clients of a defunct securities
dealer against the dealer's former auditor (see our
Exchange post, September 7, 2017, for further detail). It was
alleged that the auditor negligently audited an annual registration
renewal form required to be filed with the Ontario Securities
Commission ("OSC") to confirm regulatory compliance. It
was contended that, as a result of this alleged failure, the OSC
was deprived of information that would have caused it to intervene
in the dealer's operations and thus prevent the class's
losses.
Several common issues were certified on consent, including inter
alia whether the auditor owed a duty to the class and, if so,
whether it breached that duty. The representative plaintiff in turn
moved for summary judgment on these questions, amongst others. The
motion judge granted summary judgment, holding that the auditor
owed the class
