Toronto agent at the centre of landmark Supreme Court securities ruling

(Dov Markowich/contributed)

A Toronto real estate agent has made headlines due to an ongoing legal action that has resulted in what some experts are calling the most important Canadian securities law decision in the past decade.

The groundbreaking Supreme Court ruling, released last month, increases protections for investors by ramping up securities companies’ obligations to timely disclosure and broadening the interpretation of issues that could affect stock prices.

“It’s unusual for a Realtor to be at the centre of a precedent-setting Supreme Court ruling,” said Dov Markowich, who is with Re/Max. “I’m not a law firm, corporation or institutional player. I’m an active Toronto real estate broker who carried on my practice throughout the litigation.” There was no reason not to do so, he said.

Proposed class action targets mining giant

The case Markowich refers to is a proposed class-action lawsuit against Lundin Mining Corp., in which total damages of $185 million are reportedly being sought.

As the initiator and representative plaintiff, Markowich is seeking to sue on behalf of himself and potentially other investors over an alleged delay in the release of key facts surrounding a mine rockslide that caused Lundin Mining shares to fall. As is standard in class actions, the case is being handled on a contingency-fee basis.

His lead counsel, Jay Strosberg of Strosberg Wingfield Sasso LLP, believes the landmark Supreme Court ruling will guide Canadian markets and has “re-entrenched a level playing field.”

Markowich is so proud of the result that he now references his role in a precedent-setting legal decision in his professional email signature.

“For me, it’s a notable achievement,” he said. “The Supreme Court confirmed that events like this can be a material change that must be disclosed to investors. It’s a decision that doesn’t just affect me; it raises the standard for transparency in Canadian markets and strengthens accountability for public companies moving forward.”

‘David and Goliath’ battle, with unexpected upside

That said, his continuing lawsuit against the multibillion-dollar corporation sometimes feels like “a modern-day version of David and Goliath.”

Surprisingly, Markowich said the legal journey has not been nearly as stressful as he expected. He is enjoying the process and believes it may even be boosting his real estate career by adding to his credibility.

“Initially I thought, ‘Oh my God, what did I do?’” he recalled. “Your name is your brand in real estate. And I’m putting my name out there, exposing myself. But I truly believe in the fight we’re fighting — not just for me, but to set a national precedent. It’s about time someone held corporations accountable.”

He said it has helped that he has learned to stay calm, trust the process and let the lawyers do most of the heavy lifting. “I’m pretty good at blocking noise and focusing on what matters.”

Disclosure rules at the heart of the case

Markowich sees clear parallels between the lawsuit and the real estate industry, particularly around trust, disclosure and transparency.

“The truth will set you free. I’m a strong believer in that,” he said. “Disclosing can be hard. But if everything is laid out on the table, you avoid a lot of problems and can sleep better at night.”

Under the Ontario Securities Act, material changes that could have a significant impact on the market price of securities must be disclosed immediately by issuers.

Markowich invested in Lundin Mining shares in 2017. At the time, he and other investors were unaware that pit wall instability had caused a rockslide at one of the company’s copper mines. When Lundin later released the information about a month afterward, the company’s shares fell on the Toronto Stock Exchange.

Feeling that “investors should never be left in the dark about events that can affect their money,” Markowich sought legal action after seeing law firms advertise for plaintiffs to launch a group claim.

A case that had to be won to proceed

The first step was for the courts to determine whether the case met the legal criteria required for an investor seeking permission to sue a company for an alleged breach of timely disclosure.

In other words, Markowich had to sue to earn the right to sue.

With the Supreme Court judgment granting him permission to proceed — and strengthening investor protections in the process — the next step is to seek certification of the case as a class-action proceeding.

Markowich’s legal team believes the prospects are “excellent.” Lundin Mining, however, disagrees.

The process has been lengthy. Markowich lost in the lower court and would not be in the news today had he not appealed, taking the case all the way to the Supreme Court of Canada.

“I never thought it would make it this far,” he said. “It turned into a legal battle I never imagined would reach the highest court in the country. I thought it might be settled more quickly. I thought it would be simpler.”

‘Absolutely not’ — no regrets

Looking back, would he do anything differently?

“Absolutely not,” he said.

He said he is grateful for the outcome and humbled by the journey.

“This decision was never about noise, ego or headlines,” Markowich said. “It was about fairness, truth and the idea that one person, with enough patience and conviction, can hold a corporation to account.”