Case Overview: Cheryl Mackenzie applied to certify a multi-jurisdictional class action against Chartwell Asset Management Inc. and Gregory Cameron, claiming she and others were misinformed about their investments, leading to financial losses.

Legal Framework: The case fell under the Class Proceedings Act, R.S.B.C. 1996, c. 50, requiring Ms. Mackenzie to prove five certification criteria. The court reviewed whether her pleadings disclosed a valid cause of action and if there was an identifiable class with common issues.

Evidence: Ms. Mackenzie alleged that Mr. Cameron and CAM mismanaged investments and failed to disclose risks. She claimed she invested based on Mr. Cameron’s advice, resulting in significant financial losses when the investments defaulted.

Regulatory Proceedings: FP Canada disciplined Mr. Cameron for not adequately disclosing investment risks. The BC Securities Commission found CAM and Mr. Cameron failed to properly manage and disclose the risks of the High Income Fund (HIF), which had a significant default.

Legal Arguments/Issues: Ms. Mackenzie argued negligence, claiming CAM and Mr. Cameron breached their duty of care by not disclosing investment risks. She alleged fraudulent or negligent misrepresentation about the nature of the investments, breach of fiduciary duties owed to investors, and breach of contract terms.

Outcome: The court adjourned the application for class certification, allowing Ms. Mackenzie to amend her pleadings, which were deemed too vague and in need of more specific details. No costs or awards were detailed in favor of any party in this judgment.