Howard Levitt: Companies are off the hook for negligent workplace investigations, but outside investigators are a different story

A recent decision of the B.C. Supreme Court involved a case commenced by Sergio Salina, an investment advisor, against the Investors Group Financial Services.

Since Investors Group had a regulatory obligation to make the report to the MFDA, it was ultimately conceded that Investors had no obligation to Salina respecting the information it reported. The court held that, as long as such information is provided to a regulatory body in a confidential way concerning a member’s conduct, it is absolutely privileged and the party providing the information can never be sued by the member/employee affected.

The court held that the investigation firm could be liable for negligent investigation because the firm “was in the business of investigation, performing functions analogous to those performed by police.” However, the court said that “different considerations apply when considering the potential liability of an employer … even one that embarks upon a criminal investigation of its employee.

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