Fok Cheong Shing Investments Ltd. v. Bank of Nova Scotia, (1982) 46 N.R. 181 (SCC)

• Judge: Ritchie, Dickson, Beetz, Chouinard and Wilson, JJ.
• Court: Supreme Court (Canada)
• Case Date: September 28, 1982
• Jurisdiction: Canada (Federal)
• Citations: (1982), 46 N.R. 181 (SCC);[1982] 2 SCR 488;146 DLR (3d) 617;1982 CanLII 57 (SCC)

Fok Cheong Shing Inv. Ltd. v. BNS (1982), 46 N.R. 181 (SCC)

MLB headnote and full text

Fok Cheong Shing Investments Ltd. v. Bank of Nova Scotia

Indexed As: Fok Cheong Shing Investments Ltd. v. Bank of Nova Scotia

Supreme Court of Canada

Ritchie, Dickson, Beetz, Chouinard and Wilson, JJ.

September 28, 1982.

Summary:

A company claimed that a bank improperly charged a cheque to the company's account. The cheque was for $20,000 and an employee of the company fraudulently endorsed the cheque with the payee's name. The trial court held that the bank was entitled to charge the cheque to the company's account. The company appealed to the Ontario Court of Appeal. The Ontario Court of Appeal dismissed the appeal. The company appealed to the Supreme Court of Canada. The Supreme Court of Canada dismissed the appeal. Compare Concrete Column v. Royal Bank (1976), 8 N.R. 451 (S.C.C.).

Banks and Banking - Topic 3567

Cheques - Forged endorsements - Where payee is a real person, liability of bank - The President of a company prepared a company cheque for $20,000 payable to Weir, who was never intended to be paid - The President fraudulently endorsed the cheque with Weir's name and the drawee bank cashed the cheque - The Supreme Court of Canada affirmed that the bank was entitled in the circumstances to charge the cheque to the company's account because the payee of the cheque was a fictitious person for purposes of s. 21(5) of the Bills of Exchange Act.

Negotiable Instruments - Topic 4130

Cheques - Payee - What constitutes a fictitious payee for purposes of s. 21(5) of the Bills of Exchange Act - The President of a company prepared a company cheque for $20,000 payable to Weir, who was never intended to be paid - The Supreme Court of Canada affirmed that Weir was a fictitious payee because of the fraudulent intent of the President notwithstanding that Weir was a real person.

Words and Phrases

Fictitious person - The Supreme Court of Canada discussed the meaning of the words "fictitious person" as found in s. 21(5) of the Bills of Exchange Act, R.S.C. 1970, c. B-5.

Cases Noticed:

Bank of England v. Vagliano, [1891] A.C. 107, refd to. [para. 4].

Statutes Noticed:

Bills of Exchange Act, R.S.C. 1970, c. B-5, sect. 21(5), sect. 49(1) [para. 2].

Authors and Works Noticed:

Falconbridge on Banking and Bills of Exchange, 7th ed., page 486 [para. 5].

Counsel:

Alvin B. Rosenberg, Q.C., and Mary G. Critelli, for the appellant;

F.J.C. Newbould, Q.C., for the respondent.

This appeal was heard by RITCHIE, DICKSON, BEETZ, CHOUINARD and WILSON, JJ., of the Supreme Court of Canada at Ottawa, Ontario on June 3, 1982.

The judgment of the Supreme Court of Canada was delivered by RITCHIE, J., on September 28, 1982.