An Ontario court has dismissed an advisor’s lawsuit against his former firm for wrongful dismissal, ruling the firm had just cause for letting him go.
Earlier this week, the Ontario Superior Court of Justice ruled in favour of Gary Bean Securities Ltd.
The Exeter, Ont.-based firm was sued by former advisor, Maurizio Agostino, who claimed he was dismissed without cause back in 2001, and that he was entitled to significant compensation in lieu of notice.
According to the court’s decision, the firm argued that the termination was justified “due to an unacceptable number of errors, too many under margined accounts and client complaints”. The company argued that, rather than owing Agostino compensation, he owed the firm $121,000 due to expenses paid on his behalf and for payments made to correct his mistakes.
The court largely ruled in favour of firm, ruling the firing was justified because of evidence of dishonesty.
“The importance of an investment adviser dealing with each client and with his employer with uncompromising honesty and integrity should be self-evident. Trust is the foundation for the investment adviser’s relationships. In this case, it was shaken to the core,” stated Judge Duncan Grace. “In light of Mr. Agostino’s unauthorized trades and misrepresentations, Bean Securities had cause for dismissal.”
The court also found that Agostino owed Bean Securities certain debts when he was terminated, and it ordered in favour of the firm on its counterclaim in the amount of $63,179.66.
The court denied part of the claims against him, such as charges related to the cost of correcting errors in his accounts post-termination, noting that he “was not notified that further claims had been made and played no role in their review or in their settlement or other resolution… It is entirely possible that payments were made, in whole or in part, without legal responsibility simply to maintain a client relationship.” Therefore, it said, he could not be held responsible for these charges.