Plaintiff
Defendant
Background:
In Jastram Properties Ltd. v. HSBC Bank Canada, the plaintiff, Jastram Properties Ltd., represented a class of investors defrauded in a Ponzi scheme run by Virginia and Patrick Tan. HSBC Bank Canada provided banking services to the Tans, allegedly becoming suspicious of the fraudulent activities in 2013 but failing to investigate or warn investors.
Legal Issues:
The core issue concerned whether HSBC owed a duty of care to the investors to investigate and warn about the fraudulent activities occurring through the accounts of the Tans. The bank argued that the claim was novel and contested the duty of care. Additionally, contributory negligence by investors was considered a significant factor.
Settlement Agreement:
The parties reached a settlement before trial, where HSBC agreed to pay 25% of the investors' losses, up to a maximum of $1.2 million. Eligible losses were defined based on investments made after March 20, 2013, minus any returns and previous recoveries.
Court Ruling:
The court approved the settlement, finding it fair, reasonable, and in the best interests of the class members, given the risks of proceeding to trial and potential delays. Class counsel was awarded one-third of the settlement amount, equating to up to $400,000, plus $14,731.60 in disbursements.
Outcome:
The settlement capped HSBC's liability at $1.2 million for the investors' claims. Including the class counsel's fees and disbursements, the total amount awarded was up to $1,614,731.60, allowing class members to receive partial recovery without further litigation.
Court
Supreme Court of British ColumbiaCase Number
S179117Practice Area
Class actionsAmount
$ 1,614,732Winner
PlaintiffTrial Start Date
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