The Court of Appeal for Ontario has denied an application from two investors who were seeking to have a lawsuit against their broker and his firm, Toronto-based PI Financial Corp., heard in Ontario instead of British Columbia.
According to the decision, the investors allege that their broker mismanaged their accounts and that the firm is vicariously liable. None of the allegations have been proven.
In 2015, a judge stayed their case against PI Financial on the basis that their client account agreement stipulated that the terms of their relationship would be governed by B.C. law. They sought to have that ruling overturned, arguing that the motion judge erred in his decision.
However, the appeal court upheld the lower court ruling. Specifically, the decision notes that the investors “had the opportunity to review the agreements before signing them, but they did not do so. … A person who signs an investment contract acts at his or her own peril if they fail to read the document before signing it.”
The decision also notes that B.C. courts are able to deal with any allegations of violations of Ontario securities law and regulatory violations: “Ontario law can be proved without difficulty before the courts of British Columbia.”