Dany Heatley suing ex-agent

[IniNew 53]

Link Here

The 20-page statement of claim alleges conspiracy, oppression, breach of fiduciary obligation and unjust enrichment by the McAlpine family, which Heatley accuses of using multiple corporate entities “as a sham, cloak or alter ego, in order to shield themselves from personal liability.”

He is claiming they lured him into several business deals with promises of big returns with no payout. Mostly in real estate.

[goblue9280 33]

"According to the lawsuit, Heatley’s real-estate dealings with the family began in 2008 with a $1-million investment in condominium units across Canada, which he would see back in five years along with a 100-per-cent return."

Uh, was Heatley completely unaware of the global recession largely caused by the popping of the real estate bubble? So is the crux of his case going to be "I'm an idiot who never paid attention to the news"?

[TeamHonda401 54]

I think it's more along the lines of "I'm an idiot and I do everything my agent says because he tells me he's smarter than me." So many athletes these days have this exact same thing happen to them. There was an ESPN 30 for 30 on Marcus Dupree where pretty much the same thing happened except it wasn't buying condos. If an agent is slick enough and the athlete is ignorant enough, anything can happen.

[Chadd 916]

The guy was his business/financial adviser and was investing into projects run by his family. He's also claiming that the adviser had access to his bank accounts and large amounts of money disappeared. Obviously this is only one side of the story, but it sure sounds like the family took advantage of him. It's also not a matter of intelligence, despite some of the claims I see here. Financial and business advisers are there to manage the money and free up time for athletes or other wealthy folks. Not everyone is an expert at everything.

[goblue9280 33]

Look, I'm sure he was taken advantage of. And by all means, if money was stolen or misused, he has every right to recoup it. However, there's no excuse for not knowing that real estate investment in 2008 would be extremely risky. If (and it's a big if) the real estate investments the family sold him on were legit, he has no one to blame but himself for them going south.

[IniNew 53]

He could have been mislead. That's like saying everyone in a pyramid scheme deserves to lose all their money.

[Chadd 916]

First of all, nobody knew how bad things were going to be in 2008, only that there would likely be a recession. We've haven't had a prolonged financial downturn like this in 80 years and only a few crackpots thought it was going to happen this time. Those are the same crackpots that are always calling for the sky to fall, so eventually they will be right. Saying that a hockey player deserves to lose his money because he didn't know that a real estate investment recommended by his financial adviser was going to completely tank is a bit absurd. That would be like saying you deserve to have your car fall apart because you did what your mechanic told you to do and you should have known it was bad advice.

[goblue9280 33]

Saying that a hockey player deserves to lose his money because he didn't know that a real estate investment recommended by his financial adviser was going to completely tank is a bit absurd. That would be like saying you deserve to have your car fall apart because you did what your mechanic told you to do and you should have known it was bad advice.

Point taken, Chadd... I'm coming across a bit harsher on Heatley than I mean to. Obviously I don't know the details of his investments, nor do I know much about the Canadian housing bubble. However, I bought my house in 2008 and it was well known the housing market had been tanking for awhile. I was trying to time my purchase to the bottom, which I obviously missed. All I'm saying is if the real estate venture was legitimate and tanked because of the market downturn, he can't place all of the blame on his financial adviser. Investing money has risks and if you aren't willing to accept those risks, you shouldn't be investing. The car mechanic analogy is a strawman since when you take your car in you are putting up money for a known outcome (car fixed). With investments, you put up money without knowledge of the outcome (anything from losing it all to seeing a huge return on your investment.)

He could have been mislead. That's like saying everyone in a pyramid scheme deserves to lose all their money.

Like I said in my comment, assuming the real estate investment was legitimate. Obviously if it was a scam, he deserves it all back.

[chippa13 1844]

People still buy new in a down market, it just happens slower and at a lower price. New home building is one of the metrics used to gauge the economy. It isn't like building just stops when the economy is hurting.

[hunterphfr 12]

"According to the lawsuit, Heatley’s real-estate dealings with the family began in 2008 with a $1-million investment in condominium units across Canada, which he would see back in five years along with a 100-per-cent return."

Uh, was Heatley completely unaware of the global recession largely caused by the popping of the real estate bubble? So is the crux of his case going to be "I'm an idiot who never paid attention to the news"?

Google "Canadian Housing Bubble".There is a reason you don't know much about the Canadian Housing Bubble, it hasn't happened yet.

The global recession that has affected Europe and the US has been relatively unfelt in Canada. Canadian banks did not get involved in the risky practices and mortgages that US and European banks did. Canada was one of the only countries that did not have banks go under or need bailing out by the federal government. The Canadian economy has been doing very well, hence the parity in the dollar which the Canadian government has strived to keep artificially low in the past. The stability of the Canadian economy has made it very attractive to foreign investment. Heatley, the rest of Canada and many foreign investors felt Canadian investment over the last 4 years to be very sound. This has led to a huge upsurge in real estate construction, especially in the condo market. Canada's housing bubble has not happened yet, however many predict it is imminent. Google "Canadian housing bubble" most listings are dated July or August of this year, with a flurry of news over the last week.

[goblue9280 33]

Google "Canadian Housing Bubble".There is a reason you don't know much about the Canadian Housing Bubble, it hasn't happened yet.

That's fine, and I'm not going to question that. However:

1. The linked article states he made investments in US condos as well.

2. Even if the Canadian housing market is fine, there is always a level of risk associated with an investment.

Of course this is all based on it being a legit investment in the first place... which is a big if. I'm simply tired of reading about rich people who want to have their cake and eat it too... i.e. please invest my money, but if it goes south, you need to pay me my money back. If I go to a gas station and buy $100 in scratch offs, can I demand my money back if I don't win based on the sign by the register that says I could win up to $10,000?

[Law Goalie 147]

But if the guy at the gas station counter guarantees a 100% return in your investment in scratch tickets, you might have an argument -- especially if you initially expressed concern about the risks involved, which he blew off, and if you didn't just by the tickets, but gave in to his insistence that you give him signing authority on your accounts so he could keep buying tickets until he got you a winner.

[wrangler 157]

Seems a bit strange to me. With investments, there can be projected earnings, even very optimistic, but I've generally seen language stating things like all investment is speculative, there is inherent risk in any investment, and the investor should consider the risk before investing. I'd be amazed if anyone was stupid enough to give Heatley a contract that guaranteed he'd double his money in 5 years.

They'll have to weigh exactly what he was told, by people (including experts) on whom he could legally rely, along with common sense regarding the risk, to determine whether he's trying to blame someone else for his mistakes, or he was actually hoodwinked.

As to the breach of fiduciary duty, and unauthorized use of funds, I would think proving that would be rather straightforward.

[goblue9280 33]

But if the guy at the gas station counter guarantees a 100% return in your investment in scratch tickets, you might have an argument -- especially if you initially expressed concern about the risks involved, which he blew off, and if you didn't just by the tickets, but gave in to his insistence that you give him signing authority on your accounts so he could keep buying tickets until he got you a winner.

Yes but if I glance down at the newspaper next to the gas station register, read the headline "Winning the Lottery - A Long Shot at Best" yet still continue to listen to the clerk and give him all of my money, then I'm an idiot.

As I was writing that earlier, I figured it would be you setting my strawman ablaze, Law... lol.

[Chadd 916]

He was paying a professional to make those decisions, that professional was using that trust to enrich himself and his family. This isn't about lottery tickets. This is about conflict of interest. At least, those seem to be the allegations that Heatley is making.

[wrangler 157]

I'm guessing that you meant that's what has been alleged.

According to the article, "None of the allegations has been proved in court".

[Chadd 916]

I'm guessing that you meant that's what has been alleged.

According to the article, "None of the allegations has been proved in court".

An excellent point, and a mistake I usually don't make. Thanks for pointing that out.