Case Overview

• Business Background: Longarini and Mr. Huitema each own 50% of Grand Cannabis. A shareholder dispute led to multiple legal actions, including an Ontario Business Corporations Act (OBCA) application, a defamation lawsuit, and a Human Rights Tribunal complaint.

Legal Issues

• Longarini sued the defendants for negligence and breach of fiduciary duty related to legal services they provided in her disputes with Huitema.
• She sought reimbursement for legal costs, $17,500 paid to the defendants, $100,000 for future legal fees, and damages for psychological harm.

Findings

• Duty of Care: The court found that Lloyd, a licensed lawyer, acted as Longarini’s legal counsel, contradicting the defendants' claim that they were only providing strategic consulting.
• Breach of Standard of Care: The defendants:
  • Submitted inadmissible affidavits without firsthand knowledge.
  • Refused to allow cross-examinations, weakening Longarini’s case.
  • Engaged in improper legal tactics, increasing litigation costs.
• Causation & Damages: Due to their misconduct, Longarini lost the opportunity to effectively resist an injunction, leading to increased legal costs.

Judgment

• Longarini was awarded $41,000 plus pre-judgment interest for the defendants’ negligence.
• Claims for psychological harm and future legal fees were dismissed for lack of evidence.
• The defendants’ defenses (absolute privilege and indemnity clause) were rejected.
• Final cost submissions are due by March 5, 2025 if not settled.