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ARTICLE · 20 NOVEMBER 2025

Commercial Litigation Insights: Don't Hide Behind The Messenger – ONCA Upholds Judgment Despite Intermediary Conveying Fraudster's False Messages

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The Ontario Court of Appeal recently upheld a summary judgment finding several defendants liable for civil fraud, in relation to a $3.2 million warranty repair scheme...

CanadaLitigation, Mediation & Arbitration
Jessica Stansfield
Jessica Stansfield
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The Ontario Court of Appeal recently upheld a summary judgment finding several defendants1 liable for civil fraud, in relation to a $3.2 million warranty repair scheme.2 Notably, liability was upheld despite an intermediary conveying each fraudulent message on behalf of the defendants.

The fraudulent scheme involved the defendant corporation, Eaton Equipment Ltd. ("Eaton"), claiming to have repaired products purchased from the plaintiff, Canadian Tire Corp. ("CTC"), that were under warranty and for which CTC would reimburse Eaton for making the repairs. Eaton submitted over 27,000 receipts to CTC, which appeared to be for products purchased by CTC customers that had been returned to Eaton for repairs. However, on summary judgment, only 135 receipts were found to be related to genuine customer purchases.3 Eaton reportedly hired a graphic designer to create the false receipts, using customer data scraped from the internet, which would accompany Eaton's invoices for

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