The defendants brought a motion for summary judgment seeking dismissal of a negligence and breach of fiduciary duty claim arising from unclaimed bank draft proceeds that had been transferred to the Bank of Canada pursuant to the Bank Act after remaining unclaimed for ten years.
The plaintiff had recovered the proceeds from the Bank of Canada but claimed damages for lost investment opportunities and expenses incurred in proving entitlement to the funds.
The court held that s. 438(2) of the Bank Act releases a bank from all liability “in respect of” an instrument once the unclaimed proceeds are transferred to the Bank of Canada.
The plaintiff’s claims for costs incurred in recovering the funds and alleged lost interest arose from the bank draft itself and therefore fell within the statutory release.
Summary judgment was granted dismissing the action.
