Secondary Market Liability Securities Claims: Evidence Needed For Leave

Statutory provisions for secondary market liability do not require claimants to prove that they relied upon alleged misrepresentations or omissions. This differs from available Canadian common law claims about misrepresentations. In turn, they permit more straightforward use of class actions in relation to securities matters. The quid pro quo is that before commencing such a claim, a claimant must first obtain leave from the court.¹

Few decisions are made about leave to commence secondary market misrepresentations each year. A recent British Columbia Supreme Court decision considers this important, but infrequently adjudicated, statutory test for granting leave for secondary market liability. The decision in Tietz v. Cryptobloc Technologies Corp.² is notable for its careful review of evidence to determine whether leave should be granted.