Investors oppose efforts to divide their lawsuit against former adviser

Sixteen people crammed into a tiny Halifax courtroom Friday to witness the latest round in a five-year battle to recover their life savings.

They are part of a larger group that once included 78 people. Some have died since the legal battle began.

They were all clients of investment adviser Frederick Saturley. They accuse him of using investment techniques that were far more aggressive than they were comfortable with or had approved.

The group has launched a lawsuit against Saturley, his investment firm High Tide Wealth Management, and National Bank Financial Network, the company that actually managed the investment accounts.

It all came crashing down in early 2020 when the COVID-19 pandemic caused stock prices to plunge. The investors' accounts lost most of their value.

Eugene Tan, one of the lawyers for the plaintiffs, said the losses are close to $40 million.

"My husband and I actually sold our business in 2018-2019 and money from our business went to Frederick [Saturley]," Kathleen Trites said outside court.

"Because of what he did, he totally destroyed our financial situation. We're back working. I'm a dental hygienist, he's a dentist. We actually have to work again because we just can't afford what we have and we're basically trying to keep what we have."

Friday's appearance in Nova Scotia Supreme Court was to hear arguments from Saturley's lawyer about a severance application.

All 78 investors are part of a single lawsuit. Saturley is arguing for 78 separate lawsuits.

His lawyer, Christopher Robinson, said the investors do not have enough in common to justify having their cases heard in one trial.

Robinson described it as a "scare tactic" by the plaintiffs to suggest one trial was better for everybody.

Outside court, Fran Amirault said "my heart's starting again" after listening to Trites recount her family's struggles.

"I don't sleep well, it's been very stressful," Amirault said. "It's been hard to just be normal and be happy."

Lawyers for National Bank Financial Network were part of Friday's hearing.

They also opposed Saturley's attempt to splinter the lawsuit into 78 separate cases.

One of the reasons Robinson advanced the idea of separate trials was the risk that the plaintiffs could "shape" their testimony based on evidence from the other plaintiffs.

Justice Denise Boudreau questioned how separate trials would prevent that.

"What would prevent plaintiffs from attending the first trial?" she asked.

After three hours of arguments, Boudreau adjourned her decision on the severance application until later this month.