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by Mike Caswell

TD Waterhouse Canada Inc. has defeated an appeal from Frank O. Turkson, a client who sued over a disastrous option trade. Three judges in the Court of Appeal for British Columbia have agreed that TD did nothing wrong in its handling of Mr. Turkson's account. He placed the trade at issue, and the resulting loss is his.

The ruling, handed down on Thursday, April 13, stems from a trade that Mr. Turkson entered on June 12, 2014. On that day, he wrote (or sold) a put option for a Nasdaq listing called GT Advanced Technologies Inc. The option would have been profitable had the stock gone up. Unfortunately for Mr. Turkson, the company declared bankruptcy four months later, and the stock was soon worthless.

The loss for Mr. Turkson amounted to $60,000. (All figures are in U.S. dollars.) It comprised 3,000 GT Advanced Technologies shares that he had agreed to buy at $20. In order to make that purchase, TD liquidated other holdings in Mr. Turkson's account, which was worth $133,474 at the time.

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