Key Issues & Ruling
The defendants, Royal Bank of Canada (RBC), RBC Dominion Securities Inc., and individual executives., moved to strike Paterson’s Amended Statement of Claim, arguing it:
- Constituted an abuse of process by attempting to re-litigate issues resolved in a 2001 OSC Settlement Agreement.
- Was time-barred by the 15-year ultimate limitation period under the Limitations Act, 2002.
- Contained pleading deficiencies with respect to certain causes of action.
The court granted the motion and struck the claim, with leave to amend.
Background Facts
- Paterson, a former investment banker, entered into an OSC Settlement Agreement in 2001, agreeing to sanctions, including a $1M payment and a two-year suspension.
- In 2022, he sued RBC and its executives, alleging civil conspiracy, defamation, injurious falsehood, and interference with economic relations, based on a 2020 whistleblower note and a 1998 RBC executive memo.
- He claimed RBC executives pressured the OSC to investigate him, leading to reputational and financial harm.
Court’s Findings
- The claim implicitly challenged the factual basis of the OSC’s decision, amounting to an abuse of process.
- The limitation period expired in 2017. Paterson knew of RBC’s alleged actions by 2004 and failed to show willful concealment sufficient to override the limitation period.
Costs
- Each party was ordered to bear its own costs, given the defendants' apparent hostility towards Paterson.
- No damages were awarded.
