Cimolai v. Canada, 2007 DTC 5019, 2006 FCA 348, aff'd , 2009 DTC 6115, 2006 FCA 348 -- summary under Legal and other Professional Fees

Legal expenses incurred by the taxpayer, who was employed as a medical practitioner by a hospital, in a defamation action brought against his former professional colleagues and against his employer for suspending him from his employment, were made to protect his professional reputation and hence his capacity for future earnings and, therefore, were capital in nature. Accordingly, his expenses were non-deductible capital expenditures even if they related to his potential non-employment sources of income.