Albert Pelletier

The appellants appealed an order striking out portions of their statement of claim.

The struck portions alleged that the respondent bank owed a duty of care to the appellants, who were not its customers, to inquire into its customer's activities to ensure the accounts were not used for fraudulent purposes.

The Court of Appeal dismissed the appeal, agreeing with the motion judge that the facts pleaded did not give rise to a recognized duty of care, nor did they warrant recognizing a new duty of care under the Anns/Kamloops principles.

Following the dismissal of the main appeal, the successful third parties and defendants sought costs on a full indemnity basis, relying on prior releases and indemnity agreements.

The Court of Appeal found the claimed amounts excessive due to duplication of effort among the multiple respondents.

The Court fixed costs in reduced amounts, awarding a total of $72,000 across the various third parties and the defendant law firm.