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CANADIAN CASES on EMPLOYMENT LAW Third Series/Troisi`Eme S´Erie Recueil De Jurisprudence Canadienne En Droit Du Travail CANADIAN CASES ON EMPLOYMENT LAW Third Series/Troisi`eme s´erie Recueil de jurisprudence canadienne en droit du travail VOLUME 88 (Cited 88 C.C.E.L. (3d)) EDITOR-IN-CHIEF/REDACTEUR´ EN CHEF David Harris, B.A., LL.B. Toronto, Ontario ASSOCIATE EDITOR/REDACTRICE´ ADJOINTE Liz Rice, B.A., LL.B. Barrister & Solicitor Toronto, Ontario ASSISTANT EDITORS/ADJOINTS A` LA REDACTION´ Robert Bonhomme, D.E.C., B.L.L. Michael J. Weiler, B.A., LL.B. Heenan Blaikie LLP Coutts Weiler & Pulver Montr´eal, Qu´ebec Vancouver, British Columbia M. Norman Grosman, B.SC., LL.B. The Hon. Mr. Justice Randall Scott Grosman, Grosman & Gale Echlin, B.A., LL.B. Toronto, Ontario Ontario Superior Court Toronto, Ontario Malcolm J. MacKillop, B.A., LL.B. Magali Cournoyer-Proulx, D.E.C., Shields O’Donnell MacKillop LLP L.L.B. Toronto, Ontario Heenan Blaikie LLP Montr´eal, Qu´ebec CANADIAN CASES ON EMPLOYMENT LAW, a national series of topical Recueil de jurisprudence canadienne en droit du travail, une s´erie nation- law reports, is published 12 times per year. Subscription rate $371.00 per ale de recueils de jurisprudence sp´ecialis´ee, est publi´e 12 fois par ann´ee. bound volume including parts. Indexed: Carswell’s Index to Canadian Legal L’abonnement est de 371 $ par volume reli´e incluant les fascicules. Indexa- Literature. tion: Index a` la documentation juridique au Canada de Carswell. Editorial Offices are also located at the following address: 430 rue St. Pierre, Le bureau de la r´edaction est situ´e a` Montr´eal — 430, rue St. Pierre, Mon- Montr´eal, Qu´ebec, H2Y 2M5. tr´eal, Qu´ebec, H2Y 2M5. ________ ________ © 2011 Thomson Reuters Canada Limited © 2011 Thomson Reuters Canada Limit´ee NOTICE AND DISCLAIMER: All rights reserved. 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Martin-Fran¸cois Parent, LL.B., Legal Writer LL.M., DEA (PARIS II) Bilingual Legal Writer Melissa Dubien Content Editor Ault v. Canada (Attorney General) 161 [Indexed as: Ault v. Canada (Attorney General)] Margaret Ault, Robert Collier, Robert C. Temple, Rod Shepherd, Richard Findlay, David Luck, Lucie Nobert, Marie-France Dufour, Bryan Armstrong (Plaintiffs / Respondents) and Attorney General of Canada (Defendant / Appellant / Respondent by way of cross appeal) and Sylvain Parent, Welton Parent Inc., Loba Limited and Raymond Jemus (Third Parties / Respondents / Appellants by way of cross- appeal) David Luck (Plaintiff / Appellant / Respondent by way of cross- appeal) and Attorney General of Canada (Defendant / Respondent / Appellant by way of cross-appeal) Ontario Court of Appeal Dennis O’Connor A.C.J.O., J.C. MacPherson, E.A. Cronk JJ.A. Heard: January 25-26, 2011 Judgment: February 28, 2011 Docket: CA C49464, C49446, 2011 ONCA 147 William McDowell, Monique Jilesen, Elizabeth Richards, Emily Graham for At- torney General of Canada Dougald Brown for Respondents in C49464, Appellant in C49446 Howard Yegendorf, Marcia Green, Stephanie Lewis for Third Party Respondents Torts –––– Fraud and misrepresentation — Negligent misrepresentation (Hedley Byrne principle) — Nature and extent of duty of care — General principles –––– Third parties W Inc. and P recruited people to resign from their employment with public service, join L Ltd., and transfer their pension monies to L Ltd.’s pension plan — Public servants, including eight plaintiffs, joined L Ltd. to gain this tax-deferred pension transfer under reciprocal transfer agreement (RTA) — Crown became suspicious as to legitimacy of arrangement — After plaintiffs commenced employment with L Ltd., they learned that transfers to pension plan had been suspended and that RCMP and CRA were investigat- ing — Pension plan was revoked, and plaintiffs’ pension monies were not transferred — At trial, judge awarded damages for negligent misrepresentation to seven of eight plain- tiffs, but not to L — L appealed trial decision — Crown also brought appeal, claiming that trial judge erred in finding that it owed plaintiffs duty of care, among other relief — L’s appeal dismissed — Crown’s appeal allowed in part — Crown had duty of care to provide information to plaintiffs about known significant risk associated with category of such RTAs — Crown was not only employer of plaintiffs, but also administrator of pen- sion plan of which all plaintiffs were members as federal government employees — It was plaintiffs’ status as employees in federal public service that grounded crown’s duty of care.
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