Financial Services Litigation Bulletin - Norwich Orders Arrive in Ontario

Financial Institutions called upon to Assist in Fighting Alleged Client Fraud

When a bank's customer is suspected of defrauding someone, a court may compel the bank to disclose the customer's confidential financial records to the victim. In most circumstances, the suspected wrongdoer will not be informed that its financial information has been revealed. This type of order is known as a "Norwich order". The Superior Court in Isofoton S.A. v. Toronto Dominion Bank recently approved the use of such orders against financial institutions in Ontario.

Norwich orders are third party pre-action discovery mechanisms. They allow victims of alleged fraud to access potentially relevant information from third parties, such as financial institutions. Norwich orders have been granted to identify the wrongdoer, locate and preserve evidence, or trace and preserve assets. The underlying fundamental principal