Legal Blog

Solicitors’ Negligence

Trillium Motor World Ltd. v. Cassels Brock & Blackwell LLP 2017 Ont CA

Trial judge found that law firm breached its retainer, which had given rise to a bright line conflict or, at minimum, a substantial risk of conflict. The law firm had not disclosed to its clients that it had a retainer with another party that would result in a refusal to act for the first party if the law firm felt that there was a conflict. The trial judge found that had the clients been properly represented, they would have had a 55% chance of successfully negotiating with a third party for a substantial increase in the compensation paid to the clients. The massive decision deals with fiduciary duty; negligence; standard of care and expert evidence; contract interpretation of the retainer; limited retainers; contract interpretation (Sattva) and the relevance of surrounding circumstances that occur before the contract and, if the contract is still ambiguous, that occur after the contract; conflict of interest; causation; and the doctrine of loss of chance in both contract and tort (which differ).

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