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ARTICLE · 16 JUNE 2020

Court Of Appeal Summaries (June 1 – 5, 2020)

Blaney McMurtry LLP
Blaney McMurtry LLP
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Please find our summaries of last week's civil decisions of the Court of Appeal for Ontario.

CanadaLitigation, Mediation & Arbitration

Good afternoon.

Please find our summaries of last week's civil decisions of the Court of Appeal for Ontario.

The most interesting and notable decision this week was Justice Thorburn's decision in Wright v. Horizons ETFS Management (Canada) Inc. Like Darmar Farms, which was featured in our Top Appeals of 2019 CLE (and is awaiting to hear if leave to the Supreme Court will be granted), it would appear that the Court has once again expanded the scope of negligence claims for pure economic loss that can be brought.

In this class action, the plaintiff sued the fund manager of an ETF that tracked the VIX volatility index. On a single day in February 2018, the ETF lost 90% of its value and investors were wiped out. The fund manager subsequently wound up the ETF as non-viable. The allegation made was that such an ETF, by its very design, was doomed to catastrophically fail, and that the fund manager was therefore negligent in designing such a fund and in

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