The defendant Royal Bank of Canada moved for summary judgment to dismiss a claim by the plaintiff Foodinvest Limited.
Foodinvest sought to recover wire payments made to fraudulent Polish accounts for meat products that were never delivered.
Foodinvest alleged the Bank was negligent in not warning of the fraud or investigating the accounts.
The Bank argued its liability was limited by contract to negligence, and no negligence occurred, nor was there a duty to investigate foreign accounts or warn the customer, especially given FINTRAC obligations to not 'tip off' suspicious clients.
The court found the Master Client Agreement binding, that the Bank had no duty to warn or investigate external fraud, and that the plaintiff failed to provide expert evidence of a breach of banking standard of care.
The motion for summary judgment was granted, and the action dismissed with costs to the defendant.