An Alberta court has denied a motion by the Alberta Securities Commission (ASC) to toss out a proposed lawsuit against the provincial regulator claiming negligence.

On August 15, the Court of Queen’s Bench of Alberta denied a motion by the ASC seeking to dismiss a proposed class action suit against the regulator on the grounds that it didn’t produce enough evidence to show that there is no genuine issue for trial.

According to the decision, on June 22, 2007, Elmer Amendt filed a statement of claim against the commission, claiming to be a class action on behalf of all Albertans. It notes that the claim was prepared by the plaintiff, who is not represented by counsel, and that it is “lengthy, disjointed and contains numerous repetiti’e allegations. It offends the Rules of Court in many instances. It is difficult to read and it is difficult to understand.” Essentially, the claim alleges that the ASC acted improperly on a complaint he filed, alleging that it uncovered violations of the securities legislation but failed to act on them. And, it alleges that it acted in bad faith in its investigation. He is seeking monetary damages.

The ASC sought to have the case dismissed asserting that it acted in good faith. Securities commissions are protected by statutory immunity for acts committed in good faith.

However, the court found that, “a general assertion of good faith” is not enough to show no genuine issue for trial. “To me it is not plain and obvious that the action will not succeed,” it said. To simply rely on an assertion of good faith, “would act as a complete bar to the initiation of any causes of action in negligence against the defendant. Such a mere statement would preclude in future cases any cause of action against the defendant and a future plaintiff would have no other means of proof to demonstrate differently as the defendant could rely on confidentiality and privilege to prevent that plaintiff from learning the findings of its investigation,” it said.

“In summary in considering all of the evidence from both parties I am of the view the ASC has not shown that there is no genuine issue for trial,” it concluded.