Summary

Keywords

Torts — Negligence — Breach of fidicuary duty — Breach of contract — How is “special term” modified duty of care assessed and applied? — How do special contractual terms modifying the tort duty affect the existence and extent of fiduciary duties?

Summary

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The applicants, Yu Gu, Bo Shao and 2438866 Ontario inc., a company owned and controlled by Bo Shao, brought an action for negligence, breach of fiduciary duty and breach of contract against the respondents, Rebecca Huang a.k.a. Yungfeng Huang and Fogler, Rubinoff LLP in relation to the legal services incurred in an action that was filed against them. The applicants claimed that although the respondents were successful in the conduct of the litigation on their behalf, they breached the retainers agreed upon by failing to proceed promptly with the necessary motions. The applicants complained that the respondents incurred unnecessary costs and failed to obtain adequate costs awards or an adequate order for security of costs that would have offset the legal fees incurred. Furthermore, the applicants complained that the respondents’ termination of the retainers was unprofessional and prejudiced their interests. The Superior court of Justice dismissed the action and the Court of Appeal dismissed the appeal.

Lower Court Rulings