Marlin Investments Inc. v. Moldovan, 2014 BCCA 364
The appellant invested in a high risk options trading program, which was initially profitable. The trial judge found the program unsuitable and ordered damages by deducting the program's initial gains from its eventual losses. This approach to damages was affirmed on appeal.
The plaintiff was a corporation wholly owned by Kenneth Marlin. He had held senior positions selling mutual funds at investment firms in the 1970s and 1980s. He declared bankruptcy in 1988. He was 82 years old when he opened accounts with at the defendant dealer, had very few fixed assets and was living on government subsidies. His new client application form showed estimated net worth of $700,000, annual income of $50,000 and extensive experience in options, all of which was found to be untrue.
On appeal, Mr. Marlin was found to be 20% contributory negligent because he "did not in his own interest take care of himself". He chose to participate in the program despite his inexperience in options, his limited finances and ailing health.
A full copy of the appeal decision is found here.
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