The plaintiff, 1438767 Ontario Inc., and the defendant, The Bank of Nova Scotia (BNS), brought motions for summary judgment against Christina Giovinazzo, a former employee of the plaintiff.
Giovinazzo, acting as bookkeeper and office manager, perpetrated a fraudulent scheme from June 2014 to January 2021, creating fictitious payables and depositing $279,409.55 of the plaintiff's funds into her personal BNS account.
The plaintiff sought damages for civil fraud, conversion, and unjust enrichment, as well as punitive damages.
BNS sought damages on its crossclaim after settling with the plaintiff for $250,000.
Giovinazzo did not respond to the motions or attend the hearing.
The court found Giovinazzo liable for civil fraud, conversion, and unjust enrichment, awarding damages to the plaintiff for the remaining balance and to BNS for its settlement amount.
Punitive damages were awarded to the plaintiff, and the judgments were declared to survive bankruptcy under s. 178(1) of the Bankruptcy and Insolvency Act due to Giovinazzo's fiduciary capacity.
Substantial indemnity costs were also awarded to the plaintiff and BNS.
