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ARTICLE · 07 APRIL 2009

Fraud And Freezing Orders - Obligations Of Banks In Dealing With Client Accounts

Blake, Cassels & Graydon LLP
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In this bulletin, we address certain situations in which a bank may, or must, deal with a client's account without the client's consent.

CanadaLitigation, Mediation & Arbitration
Roy Millen
Roy Millen
Sean Boyle
Sean Boyle
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Copyright 2009, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Litigation/Financial Services, April 2009

In this bulletin, we address certain situations in which a bank may, or must, deal with a client's account without the client's consent. On April 2, 2009, the Supreme Court of Canada (SCC) released its decision in BMP Global Distribution Inc. v. Bank of Nova Scotia, 2009 SCC 15 (BMP). In BMP, the SCC clarified banks' legal obligations in dealing with client accounts, and banks' duties to their clients and other banks in circumstances of fraud. The BMP decision is consistent with other recent decisions addressing banks' duties and obligations when served with freezing and garnishing orders.

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