SCC Decision: June 1, 2007

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S acted as solicitor for a Company (3464920) whose business involved use of Canadian tax shelters.  When the Income Tax Act was amended to remove the tax shelters, the Company closed that part of its business.  One of the Company's former employees then arranged with S to start a business exploiting a different tax shelter.  S did not inform the Company of this new shelter.  After reviewing the complex events surrounding this matter, the Court held that S breached his fiduciary duty to the Company by taking a personal financial interest in the new business, which was in competition with the Company.