The Bank appealed a trial judgment finding it liable for knowing assistance in a breach of trust after it allowed a payroll processing company continued access to electronic banking facilities despite knowing of a deficit in a trust account.
The plaintiffs cross-appealed the dismissal of their claim for knowing receipt of trust funds regarding a transfer that reduced an overdraft.
The Court of Appeal dismissed both the appeal and cross-appeal, finding the trial judge correctly applied the knowledge requirement for knowing assistance and made no palpable and overriding error in concluding the Bank had no obligation to inquire into the overdrafts.
