Does a client have to deduct legal expenses from the capital amount to be invested in a mutual fund before calculating the amount of management fees?
British Columbia, Canada
The following excerpt is from Townsend v. Kroppmanns, 2002 BCCA 365 (CanLII):
In Fischuk v. Wickert, [1999] B.C.J. No. 2135 (S.C.), Mr. Justice Hunter felt bound to follow Bracey v. Jahnke (para.21) but was clearly uncomfortable in doing so. He thought it was wrong in principle to deduct legal expenses from the capital sum to be invested before calculating the award for management fees. He said:
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