Supreme Court Confirms Shareholders Cannot Sue Professional Advisors for Corporation's Losses
Third parties such as accountants or lawyers cannot be sued for offering lax advice.
In Brunette v. Legualt Joly Thiffaults, the petitioners were trustees of a trust that was the lone shareholder of a holding corporation. The corporation took tax advice from various practicing lawyers and accountants (the respondents). Their claim declares that the respondents provided poor tax advice which, in turn, lead them to arrange their tax liabilities in a way that did not comply with tax legislation and eventually lead to the corporations’ bankruptcy. This white paper reviews the court’s decision and offers key takeaways that shareholders should consider.
Sahar Cadili is an associate in the Toronto office of Dickinson Wright PLLC. Sahar is a commercial litigator with a focus on shareholder disputes, oppression cases, injunctions, breaches of contract, as well as disputes over land and personal property. Sahar also has experience in estates litigation and in representing lawyers and law firms in solicitor-client assessments.
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