Case information

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Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

Damages – Torts – Fiduciary duty – Economic loss – Physician-patient relationship – What is the law when a therapeutic doctor-patient relationship is moved over (by the doctor) into a non-therapeutic sphere, and moved over during the currency of that continuing therapeutic relationship – How is loss for breach of fiduciary duty to be quantified in Canada and which of the two models is to be followed – What is the correct measure of damages to redress a propriety claim sounding in fraud – Scope of appellate judicial intervention; in particular what are the governing principles that permit an appellate court to reverse or disregard the findings of the trial judge, absent palpable and overriding error, or error of law.

The respondent, Dr. Jatinder Sandhu, was a psychiatrist and friend of the applicant, Agyapal Grewal. Between March 2002 and December 2004, Dr. Sandhu treated Mr. Grewal for clinical depression. During the treatment period, they participated in real estate purchases and sales of a farm property and a subdivision property, which concluded in June 2005, six months after treatment had concluded. With respect to the farm property, Dr. Sandhu had held Mr. Grewal’s interest in trust and sold it to the respondent, Lakhvir Gill, for less than market value. Immediately following the sale of the properties Mr. Grewal commenced an action, alleging the defendant had cheated him financially in a manner that seriously impaired his emotional and mental health.

The Supreme Court of British Columbia allowed Mr. Grewal’s action, awarding damages and special costs against Dr. Sandhu. The court also ordered a registrar's reference to assess further damages in relation to the subdivision property. Mr. Grewal’s action against Ms. Gill was dismissed. The British Columbia Court of Appeal dismissed Mr. Grewal’s appeal on quantum of damages and allowed Dr. Sandhu’s cross-appeal, substantially setting aside the order of the B.C. Supreme Court. The Court of Appeal upheld the dismissal of the action against Ms. Gill, as well as the damages award of $162,500 against Dr. Sandhu for breach of trust with respect to the sale of the farm property. The Court of Appeal remitted to the B.C. Supreme Court for retrial the claims for pecuniary losses and counterclaim in respect of the subdivision lots.