Certification Denied In Proposed Action Against Legal And Financial Advisors

On November 14, 2011, Justice Perell dismissed the action of the putative representative plaintiff in Lipson v. Cassels Brock & Blackwell LLP et al a proposed class proceeding which is one of several in a growing trend of actions levelled against legal and financial advisors with respect to advice given on tax programs. While Justice Perell concluded the action ought to be dismissed on the basis of limitations, His Honour nevertheless noted he otherwise would have certified the proceeding against the law firm on the basis of negligence.

The representative plaintiff Jeffrey Lipson ("Lipson") participated in a tax structure known as the Athletic Trust from 2000-2003. Under the Trust, Lipson and other participants purchased timeshare weeks at a Bahamas location held by a trust, and subsequently donated them to a Canadian athletic association to receive the tax credit. Among the materials provided to potential participants was a Beneficiary Guide. A corporation retained