Cooper v Hobart

Cooper v Hobart, 2001 SCC 79 is a Supreme Court of Canada case that redefined the "Anns test", which was adopted in Kamloops (City of) v Nielsen to establish a duty of care in civil tort cases.

Cooper v Hobart
Hearing: June 20, 2001
Judgment: November 16, 2001
Full case nameMary Francis Cooper v. Robert J. Hobart and Her Majesty the Queen in right of the Province of British Columbia
Citations2001 SCC 79, [2001] 3 SCR 537
Docket No.27880
RulingAppeal dismissed
Holding
A Registrar does not owe a duty of care to investors
Court membership
Chief Justice: Beverley McLachlin
Puisne Justices: Claire L'Heureux-Dubé, Charles Gonthier, Frank Iacobucci, John C. Major, Michel Bastarache, Ian Binnie, Louise Arbour, Louis LeBel
Reasons given
Unanimous reasons byMcLachlin CJ and Major J
L'Heureux-Dubé and Iacobucci JJ took no part in the consideration or decision of the case.

Background

Eron was a mortgage broker under the Mortgage Broker's Act. Cooper had advanced money to Eron. Eron's mortgage license was suspended by Hobart acting in his official capacity as Mortgage Broker Registrar under the Act.

Cooper alleged that Hobart breached a duty of care that he allegedly owed to her and other investors because he had been aware of the serious violations of the Act committed by Eron, and not suspended its license soon enough. The Registrar of Mortgage Brokers had become aware of Eron on August 1996 and did not suspend his licence until October 1997.

At trial, the Registrar was found to have owed a duty of care to the investors. In appeal, the Court overturned the verdict on grounds that there was no sufficient proximity.

Reasoning of the Court

McLachlin CJ and Major J found that if there is no existing category that would create a duty of care, the plaintiff must show proximity, a close and direct relationship with the defendant. In this case, there was no such proximity because the statute governing the Registrar imposed no such duty. While the losses to the plaintiff were foreseeable, proceeding to a policy analysis was unnecessary.

The Court noted that even if it had gone to a policy analysis, the duty of care would be negated by policy considerations as a ruling for the plaintiff would in effect create a public insurer for investors on taxpayer dollars.

Aftermath and precedence

This case concerns pure economic loss. It is a purported application of the "AnnsKamloops test", however it actually adopts a new standard.

See also

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.