The appellant, a beneficiary of an estate, sued the respondent bank seeking a declaration that a guarantee given to the bank by an estate company was invalid.
The guarantee was authorized by the appellant's uncle, who held a power of attorney for the appellant and was a co-executor.
The bank required the guarantee to secure a loan to the uncle's personal company.
The Supreme Court of Canada dismissed the appeal, holding that the bank was not liable for knowing assistance because it lacked actual knowledge of the breach of trust, relying on a legal opinion letter.
The majority also held that the bank was not liable for knowing receipt, as it acted reasonably in the circumstances and had no duty to inquire further or require the appellant to obtain independent legal advice.
