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Legal Blog:
Dec
01
2011
Check
A customer sets up systems so that, to be valid, every cheque requires the signatures of two specified signing officers. The customer ensures that it signs a banking resolution to this effect and supplies its bank with that resolution. The customer then knows that if the bank clears cheques signed by someone other than both of the two authorised signatories, the customer will not be liable for those unauthorised cheques. Bad assumption! A number of cases have dealt with this proposition; Manor Windsor Realty Ltd. v. The Bank of Nova Scotia 2011 CarswellOnt 7227, (Ont. S.C.J.), is the most recent.
Continue Reading >Dec
01
2011
Legal Trust
As we have discussed on prior occasions, debtors and creditors often play a cat and mouse game. Debtors hide or fraudulently convey their assets and creditors seek to find the assets or set aside the fraudulent transfers. Creditors are often met with the rejoinder: “Of course I transferred that property and, no, the transferee did not pay anything for the transfer – because I always held that property in trust for the transferee, as beneficiary. Ah, the dreaded trust defence. This defence was front and centre in Duca Financial Services Credit Union Ltd. v. Bozzo, a 2011 decision of the Ontario Court of Appeal.
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