Is there a duty upon a stockbroker to ensure that the instructions are crystal clear before acting on the instructions?

British Columbia, Canada


The following excerpt is from Higgins v. Edington, 1987 CanLII 2691 (BC SC):

In Smart v. Fowler Nathanson J., in founding liability in tort, held there was a duty upon a stockbroker in taking instructions to ensure that the instructions are crystal clear before acting on them, but he also concluded there was a parallel duty on a stockbroker’s customer to ensure the instructions he gives are equally clear. Liability was apportioned in that case as a result of a misunderstanding with respect to instructions which delayed the sale of the customer’s securities.

The reasoning of Nathanson J. in Smart v. Fowler is most persuasive and consequently I conclude that since the plaintiff failed to clearly and unequivocally communicate his intentions to the broker, and the broker failed to ensure that the instructions were perfectly clear before acting on them, then both were negligent and equally at fault for the loss sustained.

Other Questions


What are the consequences of a lawyer acting without the proper instructions in a personal injury claim? (British Columbia, Canada)
What analysis is needed to determine whether the previous solicitor was acting on instructions? (British Columbia, Canada)
In what cases have the courts restrained a lawyer from acting where the lawyer has previously acted jointly for another lawyer? (British Columbia, Canada)
What are the most instructive sections of the Motor Vehicle Act, ss. 144, 179, 180, 181, and 182? (British Columbia, Canada)
Can ICBC argue that s. 91 of the Insurance Code of Canada Act, s.91(1) of the Code of Civil Procedure, or s.92 of the Act, be interpreted in the context of statutory interpretation? (British Columbia, Canada)
What is the duty of a left turning driver to ensure the way is clear prior to executing a left turn? (British Columbia, Canada)
What is the test for having clear title under the Land Title Act? (British Columbia, Canada)
What is the test for relying on ss. 160-162 of the Family Law Act, S.B.C. 2011, c. 25 [Family Law Act)? (British Columbia, Canada)
What is the effect of section 29(1) of the Criminal Code Act, section 46 of the Civil Rights Act? (British Columbia, Canada)
Can a Law Firm be disentitled to fees where the Law Firm acted without instructions? (British Columbia, Canada)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.