Legal Blog

Lawyer’s Undertaking

Bridgepoint Financial Services Limited Partnership v. Galamini 2021 Ont SCJ

The plaintiff’s lawyer signed an undertaking that, upon receiving settlement funds, a lender paying money to the plaintiff to assist in the action would be repaid from the settlement money. Settlement was made, the lawyer received the funds, and then the lawyer forgot to pay the lender. The judge held that the lawyer was personally liable for the failed undertaking, but was only liable for the debt due on the day that it should have been paid. The interest on that debt was at the prejudgment interest rate, not the contract rate of 26% per year.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.