Since the start of the pandemic in early 2020, a number of changing health protocols have been put into place to limit the spread of the virus and keep people safe, including mask mandates, lockdowns, and travel restrictions. Now that much of the Canadian population is vaccinated, the provincial and federal governments are exploring ways […]
Category Archives: Civil Fraud
Financial Advisors: New Guidelines Coming to Protect Senior Clients
Seniors, those over age 65, are disproportionately the victims of fraud and financial abuse due to social isolation, potential capacity issues, and more. Particularly since the start of the pandemic, older Canadians may be spending more time alone and online, which has increased their vulnerability to financial and investment fraud, according to the North American […]
Vacation Rental Fraud Increasing in Ontario
With vaccines on the rise and restrictions lifting across the province, many people are looking to take advantage of the summer months by vacationing with family and friends. International travel is still a somewhat restricted proposition, and so the domestic rental market has been hotter than ever this year, with people looking to escape the […]
March is Fraud Prevention Month
March is Fraud Prevention Month in Canada, with the federal Competition Bureau creating a number of targeted initiatives to ensure Canadians are aware of best practices to prevent a number of types of frauds and scams. As highlighted in a press release from the Bureau, our increasing dependency on digital communication has only increased our […]
Fraud, Letters of Credit & the Autonomy Principle
A standby letter of credit is a promise from a bank to a creditor that the bank will pay funds to the creditor in the event of a default by a debtor, so long as certain conditions are met. For example, a commercial landlord may require a standby letter of credit from a tenant’s bank […]
An Employer’s Vicarious Liability for Employee Fraud
Employee fraud most commonly occurs when an employee commits fraud against their own employer. For example, an employee might use a corporate credit card for personal expenses or submit unearned overtime hours for payment. However, there are some cases where an employee might use their position with their employer to commit fraud against a third […]
The Anti-Deprivation Rule Pt. 2: SCC Confirms Test
Last week we visited the primary legal authorities in Ontario on fraud in the event of a bankruptcy, and the anti-deprivation rule. Recently the Supreme Court of Canada (SCC), in Chandos Construction Ltd. v. Deloitte Restructuring Inc., 2020, confirmed the reasoning of those cases. Did an Insolvency Penalty Clause Contradict the Anti-Deprivation Rule? A general […]
The Anti-Deprivation Rule, Part 1: Fraud in Bankruptcy
Protecting or preserving assets during a time of insolvency is a natural temptation of debtors. Some even take a proactive approach and design contractual terms that aim to do much the same should insolvency ever arise in the future. However, when such terms are exercised, they run into possibly infringing the “anti-deprivation” rule. What is […]
“Knowing Assistance” & “Knowing Receipt” in the Fraud of a Fiduciary
A fiduciary’s responsibilities or duties are both ethical and legal in nature. The duty arises when a person (principal) willingly accepts and undertakes to enter into a fiduciary relationship on behalf of another party (the equitable owner) in relation to some beneficial interest. At that point the principal is required to act in the best […]
The Enforceability of Arbitration Clauses in Ontario
Whether in a shareholder agreement or an employment contract, the enforceability and permissible scope of an arbitration clause have been hot topics in Ontario courts in recent years. Below, we will look at how the courts have interpreted these issues and what it means for arbitration clauses in contracts going forward. What is an Arbitration […]