Mary Cooper was one of thousands of investors who advanced funds to Eron Mortgage Corporation, a licensed British Columbia mortgage broker specialising in large syndicated loans. When Eron went out of business it owed the investors over $180 million more than it was able to pay. Unable to recover from Eron, the investors turned their attention to Robert Hobart, the statutory official in charge of regulating mortgage brokers. The investors alleged that Eron had used their money for unauthorised purposes such as funding interest payments on non-performing mortgages. They further alleged that Hobart had been aware of these problems, all serious violations of statute, but that he had delayed in suspending Eron’s licence and had failed to notify investors that he was investigating Eron. Cooper therefore sought to bring a class action on behalf of the investors against Hobart and the provincial government.