Toronto cop at center of landmark Supreme Court securities ruling

A Toronto broker has made headlines for an ongoing legal action that has resulted in what some experts are calling the most important Canadian securities law decision of the past decade.

The Supreme Court’s landmark ruling, released last month, expands protections for investors by increasing securities firms’ obligations for timely disclosure and broadening the interpretation of issues that could affect stock prices.

“It’s unusual for a broker to be at the center of a precedent-setting Supreme Court decision,” said Dov Markowich, who works at Re/Max. “I am not a law firm, corporation or institutional player. I am an active real estate broker in Toronto who has continued my practice throughout the process.” There was no reason not to do this, he said.

Proposed class action targets mining giant

The case Markowich is referring to is a proposed class action lawsuit against Lundin Mining Corp., reportedly seeking $185 million in total damages.

As initiator and representative of the plaintiff, Markowich is seeking to file a lawsuit on behalf of himself and possibly other investors over an alleged delay in disclosing key facts surrounding a landslide at the mine that caused Lundin Mining’s shares to plummet. As usual with collective actions, the case is handled on a contingency fee basis.

His lead attorney, Jay Strosberg of Strosberg Wingfield Sasso LLP, believes the Supreme Court’s landmark ruling will guide Canadian markets and “re-entrenched a level playing field.”

Markowich is so proud of the result that he now references his role in a precedent-setting legal decision in his professional email signature.

“For me it is a remarkable achievement,” he said. “The Supreme Court affirmed that these types of events can be a material change that must be disclosed to investors. It’s a decision that affects more than just me; it raises the standard for transparency in Canadian markets and strengthens accountability for public companies moving forward.”

‘David and Goliath’ battle, with unexpected benefits

That said, his ongoing lawsuit against the multibillion-dollar company sometimes feels like “a modern-day version of David and Goliath.”

Surprisingly, Markowich said the legal journey wasn’t nearly as stressful as he expected. He enjoys the process and believes it can even boost his career in the real estate industry by increasing his credibility.

“At first I thought, ‘Oh my God, what have I done?’” he recalls. “Your name is your brand in real estate. And I’m putting my name out there to expose myself. But I really believe in the fight we’re fighting — not just for me, but to set a national precedent. It’s time for someone to hold companies accountable.”

He said it has helped that he has learned to stay calm, trust the process and let the lawyers do most of the heavy lifting. “I’m pretty good at blocking out the noise and focusing on what’s important.”

Disclosure rules are at the heart of the matter

Markowich sees clear parallels between the lawsuit and the real estate industry, especially when it comes to trust, disclosure and transparency.

“The truth will set you free. I strongly believe in that,” he said. “Disclosing can be difficult. But if everything is on the table, you will avoid a lot of problems and you will be able to sleep better at night.”

Under the Ontario Securities Act, material changes that could have a significant impact on the market price of securities must be promptly disclosed by issuers.

Markowich invested in shares of Lundin Mining in 2017. At the time, he and other investors were unaware that mine wall instability had caused a landslide at one of the company’s copper mines. When Lundin later released the information about a month later, the company’s shares fell on the Toronto Stock Exchange.

Believing that “investors should never be left in the dark about events that could affect their money,” Markowich sought legal action after seeing law firms advertising for plaintiffs to file a class action lawsuit.

A case that had to be won in order to continue

The first step required the courts to determine whether the case met the legal criteria required for an investor seeking permission to sue a company for an alleged violation of timely disclosure.

In other words, Markowich had to file a lawsuit to earn the right to a trial.

Now that the Supreme Court’s ruling allows it to proceed — and strengthens investor protections in the lawsuit — the next step is to seek certification of the case as a class action proceeding.

Markowich’s legal team believes the prospects are “excellent”. Lundin Mining, however, disagrees.

The process took a long time. Markowich lost in the lower court and would not be in the news today if he had not appealed and taken the case all the way to the Supreme Court of Canada.

“I never thought it would get to this point,” he says. “It became a legal battle that I never thought would reach the highest court in the land. I thought it might be settled more quickly. I thought it would be easier.”

‘Absolutely not’ – no regrets

Looking back, would he do anything differently?

“Absolutely not,” he said.

He said he is grateful for the outcome and humbled by the journey.

“This decision was never about noise, ego or headlines,” Markowich said. “It was about honesty, truth and the idea that one person, with enough patience and conviction, can hold a company accountable.”