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SCC refuses 5-4 to expand banks’ defence to conversion claims

Friday, October 27, 2017 @ 2:17 PM | By Cristin Schmitz

In a 5-4 split, the Supreme Court of Canada has declined to reconfigure its long-standing approach to the statutory defence to the tort of conversion to make it easier for financial institutions to avoid liability when they inadvertently cash fraudulent cheques.

Justice Rosalie AbellaJustice Rosalie Abella’s Oct. 27 ruling allows the appeal of bank customer, Teva Canada Ltd., from a 2016 Ontario Court of Appeal judgment in favour of TD Canada Trust and the Bank of Nova Scotia: Teva Canada Ltd. v. TD Canada Trust 2017...