The appellant bank appealed a trial judgment holding it liable for the unauthorized transfer of $4 million of the respondent's funds.
The appellant argued the trial judge erred by relying on hearsay evidence to reject its defences of acquiescence, ratification, and contributory negligence, by failing to draw an adverse inference, and by not reducing damages.
The Court of Appeal dismissed the appeal, finding the out-of-court statements were properly admitted to show the respondent's state of mind, not for their truth.
The court also upheld the trial judge's findings on the adverse inference and damages.