Laurie A. MacFarlane

The appellant bank appealed a Divisional Court decision that overturned a Tribunal's finding that the bank was a 'customer' entitled to compensation under a travel industry scheme.

The Court of Appeal found that the Tribunal's interpretation of the relationship between the bank and the travel agency was reasonable based on the evidence.

The appeal was allowed, the Divisional Court's decision was set aside, and the Tribunal's decision was reinstated.

The Travel Industry Council of Ontario (TICO) appealed a Licence Appeal Tribunal decision ordering it to pay the respondent bank $15,117.85 from the Travel Industry Compensation Fund.

The bank had reimbursed its credit card customers for travel reward points after a travel wholesaler went bankrupt.

The Divisional Court allowed the appeal, finding that the Tribunal's interpretation of 'customer' under s. 57(1) of O. Reg. 26/05 was unreasonable.

Applying the modern approach to statutory interpretation, the Court held that the bank was not a 'customer' eligible for compensation, as the legislative scheme is intended to protect the travelling public who directly purchase travel services, not entities providing indirect payment methods.