The OSC, Not The Courts, Should Determine Third-Party Document Production Requests In OSC Proceedings

In SA Capital Growth Corp. v. Mander Estate, 2012 ONCA 681 the Court of Appeal for Ontario held that requests for third-party document production in relation to Ontario Securities Commission ("OSC") proceedings should be determined by the OSC, and not the courts.

An alleged Ponzi scheme triggered regulatory proceeding before the OSC and a civil proceeding with a court-appointed receiver. Each of the OSC and the receiver were investigating the appellant, Peter Sbaraglia, in relation to this Ponzi scheme.

The appellant brought a motion before an OSC commissioner requesting third-party production from the receiver to aid in his defence. The OSC commissioner ruled that the OSC lacked the authority to order such production. The appellant did not challenge this ruling and sought third-party productions from the Ontario Superior Court of Justice (which had appointed the receiver).