Court of Appeal for Ontario

Citation: 2007 ONCA 830 Date: 20071130 Docket: C47120

Before: BLAIR, JURIANSZ and LAFORME

Between:

ROYAL BANK OF CANADA Plaintiff (Respondent)

and

GUARDIAN INTERNATIONAL GOLD CORPORATION Defendant (Appellant)

Counsel: Elaine S. Peritz for the appellant Martin Greenglass for the respondent

Heard: November 27, 2007

On appeal from the judgment of Justice R. MacKinnon of the Superior Court of Justice dated April 19 2007.

APPEAL BOOK ENDORSEMENT

[1] In our view, the motion judge was correct in concluding that the Bank was a holder in due course of the cheque and that it took the cheque in good faith and without notice of any defect in title when the cheque was delivered to the Bank for deposit, and deposited to the credit of Altemar. We do not accept the contention that the subsequent issuance of a bank draft constituted the negotiation of the cheque by the Bank and therefore that the Bank’s good faith is measured at that point.

[2] The appeal is therefore dismissed. Costs to the respondent fixed at $9,500 all inclusive.