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Watson v. Johnston, Oliphant, Van Buekenhout and Deans, (1990) 66 Man.R.(2d) 10 (QB)

Document Cited authorities 8 Cited in 4 Precedent Map Related
Vincent
JudgeScollin, J.
CourtCourt of Queen's Bench of Manitoba (Canada)
Case DateMay 11, 1990
JurisdictionManitoba
Citations(1990), 66 Man.R.(2d) 10 (QB)

Watson v. Johnston (1990), 66 Man.R.(2d) 10 (QB)

MLB headnote and full text

Roger Watson (plaintiff) v. Isaac Ray Johnston, Jeffrey James Oliphant, Thomas Julien John Van Buekenhout and James Douglas Deans, carrying on business in the firm name and style of Johnston, Oliphant, Van Buekenhout and Deans (defendants)

(CI 88-01-32000)

Indexed As: Watson v. Johnston, Oliphant, Van Buekenhout and Deans

Manitoba Court of Queen's Bench

Winnipeg Centre

Scollin, J.

May 11, 1990.

Summary:

The plaintiff lost money in a land transfer scheme to artificially inflate the price. Deans, a lawyer in the defendant law firm, handled all documentation. The operator of the scheme pleaded guilty to 29 counts of fraud. The plaintiff brought a negligence action for damages against the law firm.

The Manitoba Court of Queen's Bench allowed the action. The court held that Deans was negligent, where he knew of the tainted scheme before the plaintiff paid his money, continued to act for the operator of the scheme and did not advise the plaintiff of the risks involved. The court stated that the plaintiff's knowledge of the scheme and greediness did not make him contributorily negligent.

Barristers and Solicitors - Topic 2594

Negligence - Failure to inform client - Watson knowingly participated in a land transfer scheme to artificially inflate prices - Deans, a lawyer, acted on behalf of Barber, the operator of the scheme, and all vendors and purchasers - Deans became suspicious of the propriety and legality of the scheme and, after his suspicions were confirmed, failed to cease acting - Deans acted for Watson without advising him of the risk of participating - The Manitoba Court of Queen's Bench held that Deans was liable in negligence for Watson's loss - The court stated that Watson's layman's knowledge of the scheme and his greed did not make him contributorily negligent.

Barristers and Solicitors - Topic 2599.7

Negligence - Land transfers - [See Barristers and Solicitors - Topic 2594 ].

Barristers and Solicitors - Topic 2909

Negligence - Defences - Contributory negligence of client - [See Barristers and Solicitors - Topic 2594 ].

Cases Noticed:

Bowles v. Johnston, Oliphant, Van Buekenhout and Deans (1988), 53 Man.R.(2d) 81 (Q.B.), consd. [para. 2].

Sifton Credit Union Ltd. v. Barber et al. (1986), 41 Man.R.(2d) 295; 63 C.B.R.(N.S.) 83 (Q.B.), refd to. [para. 3].

R. v. Derco, [1986] 5 W.W.R. 283, dist. [para. 16].

Central Trust Co. v. Rafuse and Cordon (1986), 69 N.R. 321; 75 N.S.R.(2d) 109; 186 A.P.R. 109; 37 C.C.L.T. 117 (S.C.C.), reving. 57 N.S.R.(2d) 125; 120 A.P.R. 125; 147 D.L.R.(3d) 260 (C.A.), refd to. [para. 18].

Weselak v. Beausejour District Hospital No. 29 (1986), 45 Man.R.(2d) 196 (Q.B.); 49 Man.R.(2d) 86 (C.A.), refd to. [para. 18].

Statutes Noticed:

Limitation of Actions Act, R.S.M. 1970, c. L-150; C.C.S.M., c. L-150, sect. 2(1)(j) [para. 16]; sect. 2(1)(k) [para. 17].

Authors and Works Noticed:

Canadian Bar Association, Code of Professional Conduct, rule 3 [para. 12].

Salmond on the Law of Torts (15th Ed.), p. 802 [para. 16].

Counsel:

N. Cuddy and J. Jeffrey, for the plaintiff;

D. Skwark, for the defendants.

This action was heard before Scollin, J., of the Manitoba Court of Queen's Bench, Winnipeg Centre, who delivered the following judgment on May 11, 1990:

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4 practice notes
  • Hongkong Bank of Canada v. Phillips, (1997) 119 Man.R.(2d) 243 (QB)
    • Canada
    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • March 24, 1997
    ...Deans, [1988] 4 W.W.R. 242 ; 53 Man.R.(2d) 81 (Q.B.), refd to. [para. 50]. Watson v. Johnston, Oliphant, Van Buekenhout and Deans (1990), 66 Man.R.(2d) 10 (Q.B.), refd to. [para. Hedley Byrne & Co. v. Heller & Partners Ltd., [1964] A.C. 465 (H.L.), refd to. [para. 51]. Gerlock ......
  • Skimming v. Goldberg et al., (1993) 89 Man.R.(2d) 27 (QB)
    • Canada
    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • July 19, 1993
    ...41]. Panko v. Simmonds, [1983] 3 W.W.R. 158 (B.C.S.C.), refd to. [para. 41]. Watson v. Johnston, Oliphant, Van Buekenhout and Deans (1990), 66 Man.R.(2d) 10 (Q.B.), refd to. [para. Davey v. Woolley, Hames, Dale and Dingwall (1982), 133 D.L.R.(3d) 647 (Ont. C.A.), refd to. [para. 41]. MacDon......
  • Selta International Trade Inc. v. Duboff, Edwards, Haight & Schachter,
    • Canada
    • Court of Queen's Bench of Manitoba (Canada)
    • May 7, 2004
    ...178]. Good v. Bescoby (1913), 23 Man. R. 603 (C.A.), refd to. [para. 178]. Watson v. Johnson, Oliphant, Van Buekenhout and Deans (1990), 66 Man.R.(2d) 10 (Q.B.), dist. [para. Silver v. Morris (1995), 139 N.S.R.(2d) 18; 397 A.P.R. 18 (C.A.), refd to. [para. 196]. Canson Enterprises Ltd. v. B......
  • Elms et al. v. Laurentian Bank of Canada et al., 2004 BCSC 1013
    • Canada
    • British Columbia Supreme Court of British Columbia (Canada)
    • August 3, 2004
    ...Crease & Co. (1978), 88 D.L.R.(3d) 353 (B.C.S.C.), refd to. [para. 54]. Watson v. Johnston, Oliphant, Van Buekenhout and Deans (1990), 66 Man.R.(2d) 10 (Q.B.), refd to. [para. Tracy v. Atkins (1979), 16 B.C.L.R. 223 (C.A.), consd. [para. 57]. Anakotta et al. v. Perusini et al., [2004] B......
4 cases
  • Hongkong Bank of Canada v. Phillips, (1997) 119 Man.R.(2d) 243 (QB)
    • Canada
    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • March 24, 1997
    ...Deans, [1988] 4 W.W.R. 242 ; 53 Man.R.(2d) 81 (Q.B.), refd to. [para. 50]. Watson v. Johnston, Oliphant, Van Buekenhout and Deans (1990), 66 Man.R.(2d) 10 (Q.B.), refd to. [para. Hedley Byrne & Co. v. Heller & Partners Ltd., [1964] A.C. 465 (H.L.), refd to. [para. 51]. Gerlock ......
  • Skimming v. Goldberg et al., (1993) 89 Man.R.(2d) 27 (QB)
    • Canada
    • Manitoba Court of Queen's Bench of Manitoba (Canada)
    • July 19, 1993
    ...41]. Panko v. Simmonds, [1983] 3 W.W.R. 158 (B.C.S.C.), refd to. [para. 41]. Watson v. Johnston, Oliphant, Van Buekenhout and Deans (1990), 66 Man.R.(2d) 10 (Q.B.), refd to. [para. Davey v. Woolley, Hames, Dale and Dingwall (1982), 133 D.L.R.(3d) 647 (Ont. C.A.), refd to. [para. 41]. MacDon......
  • Selta International Trade Inc. v. Duboff, Edwards, Haight & Schachter,
    • Canada
    • Court of Queen's Bench of Manitoba (Canada)
    • May 7, 2004
    ...178]. Good v. Bescoby (1913), 23 Man. R. 603 (C.A.), refd to. [para. 178]. Watson v. Johnson, Oliphant, Van Buekenhout and Deans (1990), 66 Man.R.(2d) 10 (Q.B.), dist. [para. Silver v. Morris (1995), 139 N.S.R.(2d) 18; 397 A.P.R. 18 (C.A.), refd to. [para. 196]. Canson Enterprises Ltd. v. B......
  • Elms et al. v. Laurentian Bank of Canada et al., 2004 BCSC 1013
    • Canada
    • British Columbia Supreme Court of British Columbia (Canada)
    • August 3, 2004
    ...Crease & Co. (1978), 88 D.L.R.(3d) 353 (B.C.S.C.), refd to. [para. 54]. Watson v. Johnston, Oliphant, Van Buekenhout and Deans (1990), 66 Man.R.(2d) 10 (Q.B.), refd to. [para. Tracy v. Atkins (1979), 16 B.C.L.R. 223 (C.A.), consd. [para. 57]. Anakotta et al. v. Perusini et al., [2004] B......

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