Semac Industries Ltd. et al. v. 1131426 Ontario Ltd. et al., [2001] O.T.C. 649 (SupCt)

• Judge: Cameron, J.
• Court: Superior Court of Justice of Ontario (Canada)
• Case Date: July 05, 2001
• Jurisdiction: Ontario
• Citations: [2001] O.T.C. 649 (SupCt)

Semac Ind. Ltd. v. 1131426 Ont. Ltd., [2001] O.T.C. 649 (SupCt)

MLB headnote and full text

Temp. Cite: [2001] O.T.C. TBEd. SE.018

Semac Industries Ltd., O'Shea Lumber Company, Plunkett Webster Inc., Wolverene Hardwoods Inc., Taylor Lumber Inc., PJ Lumber Company, Manadnock Forest Products Inc., Tembec Lumber Inc., Blue Triangle Hardwood Inc., United States Lumber and Randolph L. Williams Lumber Company (plaintiffs) v. 1131426 Ontario Ltd., carrying on business as Bancroft Lumber & Wood Flooring Products, T.B.C. Flooring & Trim Inc., Oak Ridges Lumber Corp., Paul Taylor, John Sbrolla, David Chan, a.k.a. David Seto, Brian Wren, Huu Van Huynh, a.k.a. Mark Wong and The Canadian Imperial Bank of Commerce (defendants)

(Court File No. 98-CV-152765CM)

Indexed As: Semac Industries Ltd. et al. v. 1131426 Ontario Ltd. et al.

Court of Ontario

Superior Court of Justice

Cameron, J.

August 29, 2001.

Summary:

This headnote contains no summary.

Banks and Banking - Topic 1441

Liability of banks to customers - Duties of bank - General - See paragraphs 52 to 88.

Banks and Banking - Topic 1442

Liability of banks to customers - Duties of bank - Duty of care - See paragraphs 52 to 88.

Banks and Banking - Topic 1505

Liability of banks to customers - Negligence - In honouring cheques of customer - See paragraphs 52 to 88.

Banks and Banking - Topic 3501

Cheques and orders drawn on deposits - Payment of cheques - General - Duty of bank - See paragraphs 52 to 57.

Estoppel - Topic 382

Estoppel by record (res judicata) - Res judicata as a bar to subsequent proceedings - In interlocutory proceedings - See paragraphs 33 to 49.

Cases Noticed:

Newmarch Mechanical Constructors Ltd. v. Hyundai Auto Canada Inc. (1994), 18 O.R.(3d) 766 (Gen. Div.), refd to. [para. 34].

Dawson et al. v. Rexcraft Storage and Warehouse Inc. et al. (1998), 111 O.A.C. 201; 164 D.L.R.(4th) 257 (C.A.), refd to. [para. 35].

Silverman Jewellers Consultants Canada Inc. v. Royal Bank of Canada (2001), 143 O.A.C. 375; 53 O.R.(3d) 97 (C.A.), refd to. [para. 42].

A & A Jewellers Ltd. v. Royal Bank of Canada - see Silverman Jewellers Consultants Canada Inc. v. Royal Bank of Canada.

Barclays Bank plc v. Quincecare Ltd., [1992] 4 All E.R. 363, refd to. [para. 53].

Skovsgaard v. Toronto-Dominion Bank, [1994] O.J. No. 2327 (Gen. Div.), affd. [1995] O.J. No. 3090 (C.A.), refd to. [para. 59].

Murano et al. v. Bank of Montreal et al. (1998), 111 O.A.C. 242; 41 O.R.(3d) 222 (C.A.), refd to. [para. 59].

Hercules Management Ltd. et al. v. Ernst & Young et al., [1997] 2 S.C.R. 165; 211 N.R. 352; 115 Man.R.(2d) 241; 139 W.A.C. 241; 146 D.L.R.(4th) 577, refd to. [para. 61].

Anns v. Merton London Borough Council, [1978] A.C. 728; [1977] 2 All E.R. 492 (H.L.), refd to. [para. 61].

Nielsen v. Kamloops (City) and Hughes, [1984] 2 S.C.R. 2; 54 N.R. 1; [1984] 5 W.W.R. 1; 29 C.C.L.T. 97; 8 C.L.R. 1; 10 D.L.R.(4th) 641, refd to. [para. 61].

Hofstrand Farms Ltd. v. B.D.C. Ltd., [1986] 1 S.C.R. 228; 65 N.R. 261, refd to. [para. 61].

Canadian National Railway Co. et al. v. Norsk Pacific Steamship Co. and Tug Jervis Crown et al., [1992] 1 S.C.R. 1021; 137 N.R. 241; 91 D.L.R.(4th) 289; 11 C.C.L.T.(2d) 1, refd to. [para. 61].

Edgeworth Construction Ltd. v. Lea (N.D.) and Associates Ltd. et al., [1993] 3 S.C.R. 206; 157 N.R. 241; 32 B.C.A.C. 221; 53 W.A.C. 221, refd to. [para. 61].

Toronto-Dominion Bank v. Forsythe et al. (2000), 131 O.A.C. 14; 47 O.R.(3d) 321 (C.A.), refd to. [para. 61].

Toronto Star Television v. Etre Belle Telemarketing Corp. et al., [1999] O.T.C. 105 (Sup. Ct.), refd to. [para. 78].

Ontario Store Fixtures Inc. v. Mmmuffins Inc. (1989), 70 O.R.(2d) 42 (H.C.), refd to. [para. 78].

Valiquette v. Re/Max Realty Specialists Inc. et al., [1997] O.T.C. Uned. 403 (Gen. Div.), refd to. [para. 81].

Hanson v. Bank of Nova Scotia et al. (1994), 74 O.A.C. 145; 19 O.R.(3d) 142 (C.A.), refd to. [para. 84].

Statutes Noticed:

Rules of Civil Procedure (Ont.), rule 20.04(1) [para. 38]; rule 20.04(2) [para. 39]; rule 20.04(4) [para. 44].

Authors and Works Noticed:

Baxter, Ian F.G., The Law of Banking (4th Ed. 1992), pp. 33 [para. 52]; 56, 57, 58 [para. 58]; 59, 60 [para. 59].

Crawford and Falconbridge, Banking and Bills of Exchange (8th Ed. 1986), vols. 1, p. 753 [para. 59]; 2, pp. 1766, 1779, 1780 [para. 52].

Klar, Lewis N., Tort Law (2nd Ed. 1996), pp. 129, 130 [para. 60]; 498 ff. [para. 78].

Counsel:

Symon Zucker, for the plaintiffs;

Alan J. Butcher and Laura C. Young, for the defendant, Canadian Imperial Bank of Commerce.

This motion was heard on July 5, 2001, before Cameron, J., of the Ontario Superior Court, who released the following decision on August 29, 2001.

Please note: The following judgment has not been edited.