Mandeville wins court battle with former rep
Four years earlier, in 2016, Black and her mother had sold their business to Mandeville, agreeing to become agents of the firm. In November 2022, Black and Douglas Beck, another rep at the firm, resigned to set up a new company, seeking to bring the pooled funds business with them. Black’s mother resigned from Mandeville in 2021.
Black’s motion sought an injunction to prevent Mandeville from “objecting to or preventing a transfer of the Majestic Funds to her new business”. Or, it added, “as colloquially put by Ms. Black’s counsel – ‘to get out of the way’.” In response, Mandeville sought their own injunction preventing Black from soliciting clients of Mandeville under the agreement made when they bought her business.
In May 2020, the court heard how Black began discussions with Majestic and the Ontario Securities Commission (OSC) to determine whether she could replace Mandeville as the sub-advisor to the Majestic Funds. She acknowledged having advised Mandeville clients of her departure to establish a new business and of their investment options; one of which was to move their financial accounts from Mandeville to her new business.
On November 4, 2022, Ms. Black advised Mandeville that she was exercising “her option to replace” Mandeville in the role of sub-advisor for the Majestic Funds. Mandeville disagreed with this alleged “right”.
Justice Leonard Ricchetti, in ruling, sided with Mandeville’s argument that none of its agreements gave Black the right to bring the funds with her to her new business, saying that Black is, in fact, seeking a court order regarding the rights between Mandeville and Majestic, specifically whether Majestic can terminate Mandeville as a sub-advisor to be replaced by Black.