An article "Gardiner Miller Prevails Against Former Client" [Law Times, March 27, 2006] referred to a March 1, 2006 ruling by Justice Geoffrey Morawetz of the Ontario Superior Court in Gardiner Miller Arnold LLP v Kymbo International Inc. et al. and included comments by Mark Arnold, a lawyer involved in the case.
The decision permitted Arnold's firm to recover legal fees from his
former clients and opposing parties in a law suit which was settled
secretly without his involvement by the parties themselves. Aspects of
Justice Morawetz's ruling were not accurately described in the article
and require clarification.
In fact, there was no finding that defendants John H. Teskey, Vacation Brokers Inc. and Ridings Financial Services Inc. had defrauded Arnold's law firm of its fees, only that they had colluded with Arnold's former clients in a secret settlement giving rise to their liability. Further, there was no evidence that, at the time the settlement was first reached, Teskey knew Arnold's firm was owed money by its clients or that the injunction decision then pending would necessarily have tied up a substantial sum of money.
Both Law Times and Mr. Arnold regret any misunderstanding they may have caused and apologize to John H. Teskey, Vacation Brokers Inc. and Ridings Financial Services Inc.