A not‑for‑profit organization sought an interlocutory injunction preventing a bank from terminating its banking relationship pending trial or the outcome of related Federal Court of Appeal proceedings.
The bank had provided approximately four months’ notice of termination after the organization’s charitable status had been revoked by the Canada Revenue Agency.
The court held that banks may terminate banking relationships without cause provided reasonable notice is given and that reasonableness should be assessed in ordinary circumstances rather than based on the plaintiff’s regulatory difficulties.
Applying the RJR‑MacDonald test, the court found the plaintiff failed to establish a strong prima facie case, failed to prove irreparable harm, and did not satisfy the balance of convenience.
The request for mandatory injunctive relief was therefore refused.
