Banker Beware: Bank may be liable to third parties for its client’s fraud

David N. Vaillancourt
Affleck Greene McMurtry LLP June 13th, 2012

A bank may be liable to non-customers who are victims of a fraud carried out by a customer of the bank if the bank had constructive knowledge (but not actual knowledge) of the customer’s fraud, according to a recent decision by an Ontario court. In Pardhan v. Bank of Montreal, 2012 ONSC 2229, Justice Horkins certified a class action against the Bank of Montreal arising from a fraud perpetrated by a BMO client using BMO’s banking facilities. Salim Damji defrauded his victims of approximately 77 million dollars through a fraudulent investment scheme. Damji told his victims that he had developed [...] Full article

Request to Admit served during adjournment of trial allowed by court

Michael Binetti
Affleck Greene McMurtry LLP April 19th, 2012

In the case of Sivaji v. Rajwani, [2011] O.J. No. 6270, 108 O.R. (3d) 478, the Ontario Superior Court of Justice allowed a Request to Admit to be served during [...] Full article

Wayward Fiduciary entitled to receive bonus from former Employer, says Court of Appeal

David N. Vaillancourt
Affleck Greene McMurtry LLP February 16th, 2012

The Court of Appeal’s decision in Mady Development Corp. v. Rossetto, 2012 ONCA 31, reaffirmed the principle that equitable relief is always discretionary and fact specific. Full article

Fraud victims may not enjoy priority standing in bankruptcy proceedings

David N. Vaillancourt
Affleck Greene McMurtry LLP March 17th, 2011

In a recent decision, The Court of Appeal for Ontario clarified the circumstances under which a constructive trust remedy will be granted in favour of victims of fraud once a fraudster enters bankruptcy proceedings. In Credifinance Securities Limited v. DSLC Capital Corp,[1] DSLC made a $400,000 loan to Credifinance. Some time later, Credifinance defaulted on the repayment of the loan. DSLC came to suspect that the loan was obtained by way of fraudulent misrepresentations. Full article