Can Prop Firms in Ontario Sue Their Independent Contractors for Losses?

Quote from Bear Plunger:

Does this ever happen? Prop firms suing their traders to cover any sizeable loss?
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Who would work for a firm that had that kind of attitute or policy?
 
Quote from Bear Plunger:

Does this ever happen? Prop firms suing their traders to cover any sizeable loss?
More...

Even if they sue, what they will get from traders? Traders are already broke and lost the shirt too.:cool:
 
Why not sue? I do not know about this firm, but there are places like that in the prop world. It is a business model for some of those firms. They run a prop equivalent of a boiler room, trying to hire as many people as humanly possible. If 98 of a 100 do not make it, and 2 have the "Midas touch", you can still sue the other 98 for whatever bizarre reason. It is like a playground bully with a lawyer.

:)
 
I don’t know about Canadian law but in the US you can sue. The lawyer fees are going to cost you a lot and sure maybe you can recover that from the trader as well but they have to have money to pay. I think a lot of prop guys don’t have money so suing is pointless.
 
Quote from rcanfiel:

Who would work for a firm that had that kind of attitute or policy?
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Sorry, but that's a stupid comment. Of course you wouldn't know beforehand that they might sue you. They don't tell you up front 'If anything goes wrong, we may sue you'. Attitude? Well, everyone's on their best behaviour at the beginning of a relationship, aren't they?
 
Typical backer related B.S. Unfortunately, I have been entrapped into one of those, so now I have to deal with the consequences.
 
That's what I thought guys, I don't think traders sign anything in the beginning that says they can't be sued.

This is business, and business is business, so if a trader blew out an account for whatever reason, I don't see how they wouldn't try to recover some of the loss.

Plus, even if there were lawsuits, nobody at the firm would know right? The traders themselves would be long gone once the legal battle starts, and it would be between lawyers and courtrooms, so how would any of the current employees know what is going on.

Interesting - just was wondering if anyone heard of any such lawsuits.
 
I know of a place the had either sued, or it is in process of suing every trader that had been there and taken money out from the accounts and their accounts ended up as a loss at time of separation. (even if that amount was only related to a draw)
 
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