This proposed class action is brought against Merchant Law Group LLP and alleges that the firm collected payments from over 3,500 former Global Learning Gifting Initiative participants through misrepresentations, and then used the payments improperly, rather than for the intended purpose of financing the reasonable costs of the proposed class action.
Case Overview
This proposed class action lawsuit is brought on behalf of the following group of people:
All persons who made a retainer payment to Merchant Law Group LLP in respect of Piett v. Global Learning Group Inc., QBG 590/16 (the “Piett Action”), and excluding Lorne Piett, Randy Shoeman, Ryan Mitchell, and any Defendant or Third Party in the Piett Action or in Ontario Superior Court of Justice Court File No.: CV-17-583573-00CP (the “Class”).
In 2016, after the Tax Court of Canada found that the Global Learning Giving Initiative tax shelter (the “Gift Program”) was a sham, Merchant Law Group LLP (“MLG”) commenced the Piett Action, a proposed Saskatchewan class action, on behalf of individual donors who participated in the Gift Program.
The action against MLG alleges that MLG, Mr. Piett and others commenced a campaign to convince Gift Program participants to “sign up” for the Piett Action by paying a fee of $500 to MLG. As part of its campaign, MLG (directly and also indirectly through its proxy Donors4Donors), represented that:
In fact, affected individuals do not have to sign up to participate in Canadian class actions because they are automatically included if they meet the class definition, unless they choose to exclude themselves by opting out. MLG’s misleading representations resulted in over 3,500 former Gift Program participants making unnecessary “retainer” payments, totalling approximately $1.7 million collected by MLG.
When MLG applied to have the Piett Action certified as a class action, the Saskatchewan Court of King’s Bench instead found that the action was an abuse of process and struck it out. Among many reasons for making this decision, the Court found that MLG had actually been working together with individuals who were responsible for promoting/selling the sham Gift Program, in order to profit off of the Gift Program participants, yet again. In particular, the Court found that MLG paid substantial finder’s fees to those individuals for each Gift Program participant that they convinced to “sign up” with MLG. As a result, most of the $1.7 million collected was paid out in finder’s fees. MLG also paid itself at least $368,700 in legal fees and expenses, for its work on another matter in which it had been retained by Mr. Piett and others. The claim alleges that the “retainer” funds were misused by MLG and should be returned to the payors.
The plaintiff in this action against MLG is a former Gift Program donor who made a $500 “retainer” payment to MLG because he believed that he would not otherwise be allowed to participate in the Piett action. He alleges on behalf of all of the members of the proposed Class, that MLG is liable for fraudulent misrepresentation/deceit, negligence, breach of fiduciary duty, breach of trust, committing an equitable fraud, and unjust enrichment. He seeks the return of the full amount of the “retainer” payments, as well as aggravated and punitive damages.
For more information on the certified Ontario Gift Program/GLGI class action, see here.
Case Overview
This proposed class action lawsuit is brought on behalf of the following group of people:
All persons who made a retainer payment to Merchant Law Group LLP in respect of Piett v. Global Learning Group Inc., QBG 590/16 (the “Piett Action”), and excluding Lorne Piett, Randy Shoeman, Ryan Mitchell, and any Defendant or Third Party in the Piett Action or in Ontario Superior Court of Justice Court File No.: CV-17-583573-00CP (the “Class”).
In 2016, after the Tax Court of Canada found that the Global Learning Giving Initiative tax shelter (the “Gift Program”) was a sham, Merchant Law Group LLP (“MLG”) commenced the Piett Action, a proposed Saskatchewan class action, on behalf of individual donors who participated in the Gift Program.
The action against MLG alleges that MLG, Mr. Piett and others commenced a campaign to convince Gift Program participants to “sign up” for the Piett Action by paying a fee of $500 to MLG. As part of its campaign, MLG (directly and also indirectly through its proxy Donors4Donors), represented that:
In fact, affected individuals do not have to sign up to participate in Canadian class actions because they are automatically included if they meet the class definition, unless they choose to exclude themselves by opting out. MLG’s misleading representations resulted in over 3,500 former Gift Program participants making unnecessary “retainer” payments, totalling approximately $1.7 million collected by MLG.
When MLG applied to have the Piett Action certified as a class action, the Saskatchewan Court of King’s Bench instead found that the action was an abuse of process and struck it out. Among many reasons for making this decision, the Court found that MLG had actually been working together with individuals who were responsible for promoting/selling the sham Gift Program, in order to profit off of the Gift Program participants, yet again. In particular, the Court found that MLG paid substantial finder’s fees to those individuals for each Gift Program participant that they convinced to “sign up” with MLG. As a result, most of the $1.7 million collected was paid out in finder’s fees. MLG also paid itself at least $368,700 in legal fees and expenses, for its work on another matter in which it had been retained by Mr. Piett and others. The claim alleges that the “retainer” funds were misused by MLG and should be returned to the payors.
The plaintiff in this action against MLG is a former Gift Program donor who made a $500 “retainer” payment to MLG because he believed that he would not otherwise be allowed to participate in the Piett action. He alleges on behalf of all of the members of the proposed Class, that MLG is liable for fraudulent misrepresentation/deceit, negligence, breach of fiduciary duty, breach of trust, committing an equitable fraud, and unjust enrichment. He seeks the return of the full amount of the “retainer” payments, as well as aggravated and punitive damages.
For more information on the certified Ontario Gift Program/GLGI class action, see here.
In late 2023, Merchant Law Group brought a court application arguing that the action should have been started in Saskatchewan, not BC. The court rejected this argument. MLG tried to appeal the decision, but the appeal was not allowed.
The Plaintiffs are now proceeding with the application for certification of the action as a class proceeding. The hearing of that application will be taking place on April 23 – 25, 2025 in Vancouver.
The Notice of Civil Claim was filed in Vancouver on November 25, 2022. To read it, you can also go to the “Documents” Tab.
Updates about this proposed class action will be posted as they become available.
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