A construction company sued its former bookkeeper for misappropriating corporate funds through unauthorized cheques, debit card withdrawals, and credit card purchases.
The defendant argued the funds represented unpaid salary based on a verbal agreement for $60,000 per year, but the court rejected this claim, finding she was paid hourly and lacked authorization to access corporate funds for personal use.
The court concluded the defendant breached her fiduciary duties and committed fraud by systematically diverting corporate funds for personal benefit over several years.
Judgment was awarded for the full amount of misappropriated funds and punitive damages were granted.
The court further held the debt would survive any bankruptcy discharge pursuant to s. 178(1)(d) of the Bankruptcy and Insolvency Act.