Background:

• The Plaintiffs, elderly investors from Alberta, initiated this lawsuit in August 2020.
• They sought damages related to Citibank’s sale of shares pledged as collateral for a $35 million loan when the facility went into margin.

Procedural History:

• Plaintiffs underwent discovery in June 2022.
• Defendants moved for summary judgment.
• Plaintiffs amended their Statement of Claim; Defendants opposed due to a limitation period issue.
• Leave to amend was granted, appealed, and quashed due to jurisdictional issues.
• Defendants filed an amended defense and a Third Party Claim for contribution and indemnity.
• Plaintiffs entered into Pierringer settlement agreements with the Third Parties.

Key Legal Issues:

• Approval of Pierringer Settlements: Agreements that allow plaintiffs to settle with some defendants while limiting the liability of remaining defendants.
• Defendants sought conditions allowing continued discovery rights, including the right to examine Michael Yurkovich.

Court’s Analysis:

• Importance of Pierringer Agreements: Recognized for facilitating multi-party litigation settlements and supporting judicial efficiency.
• Fairness and Procedural Safeguards: Non-settling defendants’ rights must be preserved, ensuring they can cross-examine third parties and access necessary documentation.
• Lack of Prejudice: No late disclosure prejudicing defendants was found.

Conclusion:

• The court approved the Pierringer agreements but imposed conditions to ensure fairness:
  • Citibank Defendants retain rights to examine Third Parties for discovery.
  • Third Parties’ evidence to be used at trial if needed.
• The document does not mention a specific monetary award