On February 28, 2019, the Supreme Court of Canada ruled in favour of Judith Matte-Thompson and 166376 Canada Inc. in the matter of Salomon v. Matte-Thompson.
An eight to one majority of the court decided in favour of Matte-Thompson against the lawyer Kenneth Salomon and Montreal firm Sternthal Katznelson Montigny LLP, resulting in an award of damages of more than C$ 9.4m.
Ms. Matte-Thompson lost the investments made in two offshore funds recommended without due diligence and endorsed by her former lawyer, Salomon. The bulk of those investments came from monies inherited from her husband. The two investment advisers negligently recommended by Salomon who controlled the funds, Themis Papadopoulos and Mario Bright, were operating a Ponzi scheme and fled Canada when their fraud was exposed. Norton Rose Fulbright was retained to sue the advisers as well as Salomon and his firm. The firm obtained a default judgment against the advisers. During the proceedings against Salomon, members of the team discovered that he had received secret payments from Papadopoulos after Ms. Matte-Thompson made a significant investment with the latter.
This case started 11 years ago and included a loss at trial, a reversal by the Quebec Court of Appeal, leave to appeal granted by the Supreme Court, and then a confirmation of the Court of Appeal judgment by an eight to one majority of the Supreme Court