The plaintiffs brought a motion for partial summary judgment against the defendants, specifically Toronto Dominion Bank (TD Bank), seeking recovery for amounts paid on forged cheques by a former bookkeeper.
The motion proceeded to a mini-trial on the issue of discoverability under the Limitations Act, 2002.
The court found that the plaintiffs' claim was not statute-barred, as the fraud was skillfully concealed by the bookkeeper, and the plaintiff, a machinist without financial expertise, acted diligently once alerted to the possibility of fraud.
The court applied the "reasonable person" standard, considering the plaintiff's abilities and circumstances, and concluded that the lack of sophisticated internal controls did not render the plaintiff unreasonable.
Partial summary judgment was granted against TD Bank for the cheque fraud amounts.
