An Ontario court has tossed out a lawsuit against a brokerage firm, ruling that it was initiated after the two-year limitation period expired.
In its decision dated January 7, the Ontario Superior Court of Justice granted a motion dismissing a claim that was brought against RBC Dominion Securities Inc. and others by Kathy and Cristos Agelakos, on the basis that they brought their suit too late.
The court found that the plaintiffs in the case learned of their losses after speaking with an investigator from the Investment Dealers Association of Canada (IDA) back in July 2007, but that they didn’t bring their lawsuit until September 2009, claiming damages due to their lost investment in an offshore hedge fund.
However, according to the decision, an intervener in the case, James Howarth Bennett, argued that the Agelakos possessed minimal business and financial knowledge; and so, he argued that the limitation period should not start until after they met with him in October 2007 and received legal advice.
The court rejected this argument. “The case law does not support the proposition that if one’s business acumen lies below a certain level, then the limitation period does not commence until one obtains the services of a lawyer,” it said.