The defendant, who was a chartered accountant, advised the plaintiff to invest in certain MURBs but, contrary to the rules of professional conduct, failed to disclose to the plaintiff that the defendant would receive fees from the MURB developers when his clients invested in these projects.
The majority of the Court found that their relationship required trust, confidence, and independence, that the plaintiff relied on the defendant's advice, and that accordingly, there was a fiduciary relationship between the parties. The damages payable by the defendant for breach of his fiduciary duties were to be calculated on the basis of putting the plaintiff in the same position he would have occupied if the breach had not occurred. Because the disclosure of the fee relationship would have caused the plaintiff not to invest, the defendant was liable for the plaintiff's full loss on his investment.