The defendant bank moved for summary judgment to dismiss an action brought by a former lawyer seeking $10,000,000 in damages for the revocation of his law license and criminal conviction for fraud.
The plaintiff alleged that the bank's negligent administration of his trust account, specifically double-debiting certified cheques, caused a shortfall that prevented a real estate transaction from closing, which triggered a Law Society investigation and ultimately led to his license revocation and criminal conviction.
The court granted the motion and dismissed the action, finding that the plaintiff's license revocation and conviction were caused by his own misappropriation of trust funds, not by the bank's double-debits.
The investigation was initiated by a complaint from the plaintiff's former law clerk regarding unauthorized transfers from the trust account, not by the failed transaction.
The court found no causal link between the bank's conduct and the damages claimed.