Justice Michael Dambrot of the Superior Court of Justice, dismissed on August 25, 2003, a multi-million dollar lawsuit filed against Merrill Lynch Canada Inc. and one of its investment advisors.
Merrill Lynch and its former investment advisor were sued by two of Merrill Lynch’s former clients for investment losses of approximately $4 million. The clients made and then lost approximately $4 million during 1999 and 2000. The plaintiff alleged breach of fiduciary duty, breach of contract and negligent investment advice. The trial lasted for almost four weeks in April and May. The trial judge dismissed the claim—finding that, while Merrill Lynch had not complied with all its statutory and regulatory obligations regarding the plaintiffs’ accounts, nothing it did or failed to do had caused the plaintiffs’ losses. He also found that the advice provided by Merrill Lynch throughout was appropriate and that it was the plaintiff’s own misfortune.
The plaintiffs were represented by Peter Greene and Ken Dekker of Affleck Greene Orr LLP in Toronto. Merrill Lynch and its former advisor were represented by Ed Babin and Crawford Smith of Torys LLP.