http://www.cuminggillespie.com

This e-mail is to update you on developments since our August 7, 2007 update on the status of this litigation.

As of this update, we do not have a decision from the Court with regard to the Certification of our action as a Class Action.

We continue to work with counsel in the United States to have the HMS investor funds frozen in the First National Bank of San Diego transferred to the Alberta Courts.

We are also working with counsel in Indiana to recover funds which were invested by Garth Bailey, and which we believe are HMS investor funds.

We continue to prepare and submit Assurance Fund Applications for those clients who responded that they would like us to do so on their behalf. To date we have submitted over 60 applications. To date the Law Society has responded with requests for further information, which we are now responding to in advance for all new applications. No other timeline for response has yet been
given.

On November 23, 2007 an application was heard with respect to a request by the Alberta Lawyers’ Insurance Association (”ALIA”) and the Canadian Lawyers’ Insurance Association (”CLIA”) to have a referee appointed with respect to the review and production of the Defendant Lawyers Bailey and Carlson’s Trust Records, at the Plaintiffs’ cost. The application by ALIA/CLIA was dismissed,
however, ALIA/CLIA are permitted to use the referee they were proposing at their cost. ALIA/CLIA was given 60 days to make a decision on whether or not they wished to proceed with their referee. Further, 60 days after November 23, all documents requested from Bailey and Carlson will be released to Plaintiffs’ counsel, unless ALIA/CLIA have elected to pay for and invoke the referee process.

Please note that Mr. Bill McNally of McNally Cuming Raymaker has retired. With his retirement, the firm of McNally Cuming Raymaker has changed its name to Cuming Gillespie Raymaker. The new website containing the information on our action is
www.cuminggillespie.com/practice-areas/class-action/securities/
hms-financial-inc.html.

Also, please remember that we try our best to keep you up to date on how things are proceeding and that we will provide you with updates as there is news to update you with. If you do not receive an update for several months, this means that there is nothing newsworthy to share with you.

Yours truly,

Lynn Dechaine (for Graham McLennan)
Paralegal - Litigation
McLennan Ross LLP
Toll Free: 1-800-567-9200
Direct Line: (780) 482-9281
Fax: (780) 482-9100

Our co-counsel Mr. Michael Hook and his litigation partners in the United States brought the first U.S. Accutane claim to court and were awarded 2.6 million dollars in damages. Cuming, Gillespie & Raymaker, Alberta Injury Lawyers, is national co-counsel on behalf of all Canadians injured by Accutane use in Canada.

Cuming Gillespie & Raymaker successfully resolved a multi party injury claim where the plaintiff suffered from ongoing chronic pain. The matter was settled at a Judicial Dispute Resolution Conference and involved extensive input from the court. The details of the six figure settlement are confidential.

December 2007

The One Percent Rule Revisited

In Danek v. Calgary (City), 2007 ABQB 670 the Defendant City of Calgary took the position that the Administrator of the Motor Vehicle Accident Claims Act was responsible for paying a portion of a judgment where liability was joint. In short, the City took issue with the 1% Rule. The court disagreed with the City and confirmed that in cases involving multiple tortfeasors, the Administrator does not contribute if any other party is at least 1% liable. The Fund is a recovery source of last resort.

Master Hanebury

The Right to a Nominee during a Rule 217 Examination

In Nistor v. Kankolongo, 2007 ABQB 684 the Plaintiff wanted to have his own nominee present during a Rule 217 Psychological exam. The Defendant objected citing concerns that a third party nominee may negatively impact the quality of testing. The court disagreed with the Defendant and directed that the nominee be present. The court confirmed the principle that the Plaintiff’s right to have a nominee present is absolute.

M.B. Bielby

No Liability for a Municipality for Trees Near an Intersection

In Malmas Estate v. Mittelstadt, 2007 ABQB 648 the Defendants issued a Third Party Notice against the County of Wetaskiwin No. 10 for failing to erect signage at an uncontrolled intersection and for failing to clear trees that allegedly obscured the intersection. The County brought a motion for summary judgment on the grounds that section 533 of the Municipal Government Act provided a complete defence. The court agreed and held that a County cannot be liable for a decision not to control an intersection or for trees that might obscure the intersection. The principles of stare decisis should be followed.

S. Sanderman

Minor Soft Tissue Injures: British Columbia

In Dadson v. Gallo, [2007] B.C.J. No. 2215, the female plaintiff suffered a minor injury in a low impact collision. The plaintiff maintained that her injuries were acute for 6 months and generally symptomatic for 17 months. The court disagreed and held that the injuries “were resolved sometime within four to six months from the date of the accident.” The court was of the view that strain was no worse than Grade II and awarded $15,000.00 for general damages. The court also awarded loss of housekeeping of $3,000.00.

D. Satanove

Post Traumatic Stress Only: Damages for Nervous Shock

In Arnold v. Cartwright Estate, [2007] B.C.J. the male plaintiff attended at the scene of an accident and assisted with first aid on the victims, three of who died. Eleven months later the plaintiff suffered a panic attack and was diagnoses with post traumatic stress and bipolar disorder. The court awarded damages for the post traumatic stress finding that it was sufficiently connected to the accident. The court did not award damages for losses it determined flowed from the bi-polar disorder. For Post Traumatic Stress Disorder symptoms lasting 12 to 18 months the court awarded $10,000.00 for general damages.

G.B. Butler

Case Summaries Prepared by
Craig G. Gillespie
Cuming Gillespie & Raymaker
403-571-0555
cgillespie@cuminggillespie.com
www.cuminggillespie.com

*If you have interesting cases that you think should be summarized please email me the citation for review.