On February 24, the Supreme Court of Canada heard the appeal in Teva Canada Inc. v. Bank of Montreal. The appeal concerns who bears the loss for cheques payable to fictitious or non-existing payees, which were fraudulently issued by an employee. The Ontario Court of Appeal held that the drawer (i.e. the employer) should bear the loss in this case, rather than the collecting banks (see our post about the Ontario Court of Appeal decision here). At the hearing, the Court was particularly engaged with the parties' arguments, and the justices had many questions for the appellant and respondents.
The Court reserved its decision at the conclusion of the hearing. Stay tuned for our next post once the Court releases its decision...
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