The applicant, Loop Financial Inc., brought an application for judgment against the respondent, Royal Bank of Canada (RBC), seeking $90,000 for pure economic loss.
Loop alleged that RBC was negligent and breached a duty of care by failing to notify Loop that funds had been fraudulently transferred from an RBC customer's account to a Loop account.
The funds were subsequently withdrawn by the fraudster before the transfer was reversed under Payments Canada Rules.
The court applied the Anns test and held that RBC did not owe a duty of care to Loop, a non-customer, as RBC had not undertaken any responsibility toward Loop and there was no reasonable reliance.
The court further found that even if a duty existed, Loop failed to prove that RBC breached the standard of care.
The application was dismissed, and RBC was awarded $20,000 in partial indemnity costs.