The appellant credit card issuer appealed a trial decision dismissing its claim against the respondent employer for unauthorized cigarette purchases made by an employee using a company credit card.
The trial judge found the cards were issued for fuel purchases only.
On appeal, the Divisional Court held that while the trial judge erred in requiring specific acknowledgment of the cardholder agreement's liability clauses, the appellant breached its contractual obligation to use reasonable commercial efforts to enforce the fuel-only restriction.
The court also rejected the appellant's arguments regarding contributory negligence and vicarious liability, finding the employer did not enhance the risk of the employee's wrongful act.
The appeal was dismissed.
