The plaintiffs brought a motion for partial summary judgment against the defendant bank for amounts paid on cheques forged by the plaintiffs' former bookkeeper.
The bank raised two defences: an alleged account verification agreement and the expiry of the limitation period.
The court found no genuine issue requiring a trial regarding the agreement defence, as the bank could not produce evidence that the relevant plaintiffs had signed such an agreement.
However, the court found a genuine issue requiring a trial regarding the limitation period defence, specifically on the issue of discoverability, and ordered a mini-trial to determine when a reasonable person ought to have discovered the forgeries.
