The appellants appealed a decision of the Ontario Court of Appeal regarding the allocation of losses between beneficiaries after a trustee made unauthorized disbursements from a mingled bank account.
The appellants argued that the 'first-in, first-out' rule in Clayton's Case should apply to determine how the remaining insufficient funds were distributed.
The Supreme Court of Canada dismissed the appeal, agreeing with the Court of Appeal that the rule should not apply and adopting the reasons of the lower court.
