Fraud Against Banks May Be Dealt With On Summary Judgment

In applying to TD for a line of credit, Mr. and Mrs. Jolly represented that they held a beneficial interest in their house. The Jollys subsequently advised TD that they held the house in trust for their children, and then transferred it for no consideration to their son, who sold it. TD commenced an action against the Jollys for fraudulent and/or negligent misrepresentation. TD brought a motion for summary judgment on the basis of fraudulent misrepresentation. In reference to a 1999 case, Re Sher, the Jollys argued that it was a long-standing principle that fraud is too serious a matter to be dealt with on summary judgment. The Court clarified that Re Sher does not govern summary judgment motions, and that no such principle exists. TD was granted summary judgment.