The Ontario Superior Court of Justice has denied a motion from Canaccord Genuity Corp. for summary judgment against a former broker, seeking repayment of more than $1.5 million in transition loans.
The court rejected Canaccord’s application in its action against Nerio D’Ambrosi for two loans that the brokerage made when he was recruited to the firm in 2009.
According to Canaccord Genuity Corp. v D’Ambrosi, the firm argued that there is no genuine issue that requires a trial in the case, and it pointed to previous cases where courts have enforced these kinds of loans agreements between firms and reps.
The decision says D’Ambrosi argued that “there is no obligation to repay the loans, because the repayment terms were not part of the negotiated terms and are not binding.” In fact, it notes that the terms of the loans were not delivered to D’Ambrosi until 10 days after their business relationship began.
Additionally, the decision indicates that D’Ambrosi has advanced a counterclaim seeking $1.5 million in damages, along with $250,000 in punitive, exemplary, and aggravated damages, although the counterclaim is not part of the motion denied by the court.
None of the allegations in the suit have been proven. Indeed, on the motion for summary judgment, the court sided with the D’Ambrosi, ruling that there are genuine issues in the case that require a trial.
The court noted that “there is clearly significant evidence which may require the evaluation of credibility of certain witnesses.”
As a result, it dismissed the firm’s motion.