Hidden Rock Drilling Ltd v. Klassen, 2011 BCCA 216

The central issue in this case was the nature of the business relationship between Mr. Buchan, a prospector and owner of Hidden Rock Drilling Ltd. (Hidden Rock), and Mr. Klassen, a securities lawyer, in relation to an aggregate gravel quarry operation in northern British Columbia.

Hidden Rock claimed that it beneficially owned 100% of the gravel tenures and that Mr. Klassen had defrauded it out of a 50% interest in them. Mr. Klassen had performed solicitor's work for Hidden Rock and related companies, but he claimed to have been engaged with Mr. Buchan in a joint venture as equal partners.

At trial, the main question for the Court was whether the parties were in fact engaged in a joint venture, or, whether they were merely engaged in an owner-solicitor relationship. Although the terms of the relationship had not been reduced to writing, the trial judge found that the relationship contained all the characteristics of a joint venture. She held that Mr. Klassen