Summary

1. The law firms of Sutts, Strosberg LLP and Groia & Company Professional Corporation are counsel in a class action against, among other defendants, Trinity Capital Corporation, Trinity Wood Capital Corporation, James Douglas Beatty, James Gordon Arnold, BDO Dunwoody LLP and Fraser Milner Casgrain LLP.

2. The claim is on behalf of all persons, other than certain persons associated with the defendants, who participated in the Donation Program for Medical Science and Technology (the “Program”) in at least one of the taxation years of 2001, 2002 or 2003. The Program was marketed as a tax shelter that permitted participants to make leveraged donations to charities.

3. The class action concerns leveraged donations that were made in accordance with the terms of the Program. Each donor who participated in the Program was required to use their own funds for a portion of the donation and was provided with the option of financing for the balance of the donation.

4. Participants in the program were issued official charitable donation income tax receipts to permit them to claim an income tax credit for an amount that included the financed portion of the donation. The Canada Revenue Agency disallowed the income tax credits claimed by the donors and that decision was upheld by the Tax Court of Canada.

5. The plaintiffs allege, among other things, that the defendants were negligent in designing, promoting and operating the Program.

6. The defendants brought summary judgment motions arguing that the action is statute-barred because of the passage of time. Justice Strathy of the Ontario Superior Court of Justice dismissed the motions.  The reasons may be reviewed here.  

7.  Justice Belobaba of the Ontario Superior Court certified the action as a class action on May 30, 2013.  Justice Belobaba's endorsement maybe be viewed here.  The court approved notice may be reviewed here (English) (French).

8.  The opt-out period has now ended.  If you participated in the Program in 2001, 2002, and 2003, and did not opt-out of the class action by October 1, 2013, then you are a class member whose claims with respect to the Program are included in this class action.

9.  The examinations for discovery are being held during the month of June-September 2016.  At the examinations for discovery, the lawyers will have an opportunity to ask questions of the parties regarding the Program.

10.  The next major step in the action will be the trial of the common issues which is not expected to take place for at least another year.

11.  If you participated in the Program in the taxation years of 2001, 2002, or 2003, please enter the information requested on the communication page.

12. If you have any questions, please call Sutts, Strosberg LLP at 1.800.229.5323, extension 8274.

13. If you would like to know more about how a class action works, click here.