An Ontario court has tossed out a man’s claim against Toronto Dominion Bank over an unclaimed bank draft that was eventually forwarded to the Bank of Canada, that he claims was rightfully his.
The Ontario Superior Court of Justice last week granted summary judgment in favour of TD Bank dismissing the claim of Peter Wilson, who was seeking damages for negligence and breach of fiduciary duty because of lost investment opportunities on a bank draft for $188,384.67 that TD forwarded to the Bank of Canada after it went unclaimed for 10 years.
He recovered the funds from the Bank of Canada, but was required to post a bond since TD did not support his claim to the money, saying that it had no evidence he was the rightful owner. The decision notes that Wilson had no proof of ever having been a customer of the bank, and no proof of his connection to the unclaimed proceeds.
The court ruled that it could not determine whether he was the rightful owner of the funds without a trial. However, it also found that a trial was not necessary, as TD is protected from liability in the case by the Bank Act.
Wilson was claiming damages for the costs incurred in proving to the Bank of Canada that he was the rightful owner of the unclaimed proceeds, and for lost investment opportunities or interest.
According to the decision, the damages claimed for costs incurred are clearly barred by the legislation. And, in terms of the claim for opportunity cost, that also falls within the protection provided in the legislation. The only way that sort of claim could succeed, it suggests, was if a plaintiff could establish that they had a customer relationship with the bank, and had evidence that they had instructed the bank to place the funds into an interest bearing account. However, there is no evidence of that in this case. As a result, the action was dismissed.