The sole shareholder and directing mind of two corporations altered a cheque payable to one corporation by adding the second corporation as a payee.
He deposited the unendorsed cheque into the second corporation's account at the appellant bank.
The first corporation subsequently went into receivership, and its receiver brought an action in conversion against the bank.
The Supreme Court of Canada held that the bank was not liable in conversion because the sole shareholder, as the directing mind of the first corporation, had the authority to direct the bank to deposit the funds into the second corporation's account.
Since the bank acted with the authorization of the rightful owner, there was no wrongful interference.
