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   THE TORT OF CONVERSION AND THE COLLECTING BANK: TEVA CANADA LTD V BANK OF NOVA SCOTIA
							| The Canadian Bar Review
  </title><meta content="Open Journal Systems 3.1.2.0"name=generator><link href=https://cbr.cba.org/public/journals/1/favicon_en_US.jpg rel=icon><link href=http://purl.org/dc/elements/1.1/ rel=schema.DC><meta content="MH Ogilvie"name=DC.Creator.PersonalName><meta content=2014-04-01 name=DC.Date.created scheme=ISO8601><meta content=2017-09-22 name=DC.Date.dateSubmitted scheme=ISO8601><meta content=2014-04-01 name=DC.Date.issued scheme=ISO8601><meta content=2017-09-22 name=DC.Date.modified scheme=ISO8601><meta content="The question of who should bear the loss when an employee defrauds an
employer by means of cheques drawn on the employer’s account has
arisen frequently in banking law. Yet an answer which accords with the
common sense that the employer and/or employee should do so eludes
the Supreme Court of Canada, in contrast to that result in other common
law jurisdictions. In a recent case, Teva Canada Ltd v Bank of Nova
Scotia, the Court declined leave to appeal in a case which would have
challenged the Court to reconsider Boma Manufacturing Ltd v CIBC and
the vexed issues canvassed there of the meaning of sections 20(5) and
165(3) of the Bills of Exchange Act, and of the common law doctrines of
estoppel by negligence, contributory negligence and vicarious liability.
This paper sets out these legal issues and a possible resolution in the
hope that the court will revisit this frequent fact paradigm in the future "name=DC.Description xml:lang=en><meta content="La question de savoir qui doit assumer les pertes lorsqu’un employé
fraude un employeur au moyen de chèques tirés sur le compte de ce
dernier s’est posée fréquemment dans le domaine du droit bancaire.
Pourtant, une réponse faisant preuve de bon sens qui veut que
l’employeur et/ou l’employé doive assumer cette perte n’est pas celle de
la Cour suprême du Canada, contrairement aux conclusions prises par
les tribunaux des autres pays de common law. Dans l’affaire récemment
tranchée, Bank of Nova Scotia v. Teva Canada Limited, la Cour suprême
a refusé l’autorisation d’appel dans une cause qui l’aurait menée à se
pencher sur la décision rendue dans l’arrêt Boma Manufacturing Ltd. c
Banque Canadienne Impériale de Commerce. Dans cette dernière
affaire, les questions délicates suivantes avaient été examinées en
profondeur: l’interprétation des paragraphes 20(5) et 165(3) de la Loi
sur les lettres de change et les concepts de common law relatifs à la fin
de non-recevoir fondée sur la négligence, la négligence contributive et la
responsabilité du fait d’autrui. Le présent texte présente ces questions
juridiques et envisage une façon de les résoudre dans l’espoir que la
Cour réexaminera cet enjeu majeur dans un avenir rapproché "name=DC.Description xml:lang=fr><meta content=application/pdf name=DC.Format scheme=IMT><meta content=4309 name=DC.Identifier><meta content=https://cbr.cba.org/index.php/cbr/article/view/4309 name=DC.Identifier.URI><meta content=en name=DC.Language scheme=ISO639-1><meta content="Copyright (c)  "name=DC.Rights><meta name=DC.Rights><meta content="The Canadian Bar Review"name=DC.Source><meta content=0008-3003 name=DC.Source.ISSN><meta content=3 name=DC.Source.Issue><meta content=91 name=DC.Source.Volume><meta content=https://cbr.cba.org/index.php/cbr name=DC.Source.URI><meta content=torts name=DC.Subject xml:lang=en><meta content=conversion name=DC.Subject xml:lang=en><meta content="Banking law"name=DC.Subject xml:lang=en><meta content="collecting bank"name=DC.Subject xml:lang=en><meta content="THE TORT OF CONVERSION AND THE COLLECTING BANK: TEVA CANADA LTD V BANK OF NOVA SCOTIA"name=DC.Title><meta content=Text.Serial.Journal name=DC.Type><meta content="Legal Commentary"name=DC.Type.articleType><meta content=1.1 name=gs_meta_revision><meta content="The Canadian Bar Review"name=citation_journal_title><meta content=1 name=citation_journal_abbrev><meta content=0008-3003 name=citation_issn><meta content="MH Ogilvie"name=citation_author><meta content="THE TORT OF CONVERSION AND THE COLLECTING BANK: TEVA CANADA LTD V BANK OF NOVA SCOTIA"name=citation_title><meta content=2014/04/01 name=citation_date><meta content=91 name=citation_volume><meta content=3 name=citation_issue><meta content=https://cbr.cba.org/index.php/cbr/article/view/4309 name=citation_abstract_html_url><meta content=torts name=citation_keywords xml:lang=en><meta content=conversion name=citation_keywords xml:lang=en><meta content="Banking law"name=citation_keywords xml:lang=en><meta content="collecting bank"name=citation_keywords xml:lang=en><meta content=https://cbr.cba.org/index.php/cbr/article/download/4309/4302 name=citation_pdf_url><link href=https://cbr.cba.org/index.php/cbr/gateway/plugin/WebFeedGatewayPlugin/atom rel=alternate type=application/atom+xml><link href=https://cbr.cba.org/index.php/cbr/gateway/plugin/WebFeedGatewayPlugin/rss rel=alternate type=application/rdf+xml><link href=https://cbr.cba.org/index.php/cbr/gateway/plugin/WebFeedGatewayPlugin/rss2 rel=alternate type=application/rss+xml><script async charset=utf-8 src=https://platform.twitter.com/widgets.js></script><link href=https://cbr.cba.org/index.php/cbr/$$$call$$$/page/page/css?name=stylesheet rel=stylesheet><link href=//fonts.googleapis.com/css?family=Lora:400,400i,700,700i|Open+Sans:400,400i,700,700i rel=stylesheet><link href=https://cdnjs.cloudflare.com/ajax/libs/font-awesome/4.7.0/css/font-awesome.css rel=stylesheet><link href=https://cbr.cba.org/plugins/generic/orcidProfile/css/orcidProfile.css rel=stylesheet><link href=https://cbr.cba.org/public/journals/1/styleSheet.css rel=stylesheet><body class="pkp_page_article pkp_op_view"dir=ltr><div class=cmp_skip_to_content><a href=#pkp_content_main> Skip to main content </a><a href=#pkp_content_nav> Skip to main navigation menu </a><a href=#pkp_content_footer> Skip to site footer </a></div><div class=pkp_structure_page><header class=pkp_structure_head id=headerNavigationContainer role=banner><div class=pkp_head_wrapper><div class=pkp_site_name_wrapper><div class=pkp_site_name><a href="															https://cbr.cba.org/index.php/index
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Yet an answer which accords with the common sense that the employer and/or employee should do so eludes the Supreme Court of Canada, in contrast to that result in other common law jurisdictions. In a recent case, Teva Canada Ltd v Bank of Nova Scotia, the Court declined leave to appeal in a case which would have challenged the Court to reconsider Boma Manufacturing Ltd v CIBC and the vexed issues canvassed there of the meaning of sections 20(5) and 165(3) of the Bills of Exchange Act, and of the common law doctrines of estoppel by negligence, contributory negligence and vicarious liability. This paper sets out these legal issues and a possible resolution in the hope that the court will revisit this frequent fact paradigm in the future</div><div class="item downloads_chart"><h3 class=label>Downloads</h3><div class=value><span> Total downloads: <span class=usageStatsTotalDownloads> </span> </span><p></p><canvas class=usageStatsGraph data-object-id=4309 data-object-type=PublishedArticle></canvas><div class=usageStatsUnavailable data-object-id=4309 data-object-type=PublishedArticle>Download data is not yet available.</div></div></div></div><div class=entry_details><div class="item galleys"><ul class="value galleys_links"><li><a class="obj_galley_link pdf"href=https://cbr.cba.org/index.php/cbr/article/view/4309/4302> PDF </a></ul></div><div class="item published"><div class=label>Published</div><div class=value>2014-04-01</div></div><div class="item issue"><div class=sub_item><div class=label>Issue</div><div class=value><a class=title href=https://cbr.cba.org/index.php/cbr/issue/view/552> Vol 91 No 3 (2014) </a></div></div><div class=sub_item><div class=label>Section</div><div class=value>Legal Commentary</div></div></div></div></div></article></div></div><div class="pkp_structure_sidebar left"aria-label=Sidebar role=complementary><div class="pkp_block block_custom"id=customblock-CBALogo><div class=content><p><a href=https://www.cba.org/Home> <img alt src=/public/site/images/pkpadmin/NationalLogo.gif> </a></div></div><div class="pkp_block block_language"><span class=title> Language </span><div class=content><ul><li class="locale_en_US current"><a href=https://cbr.cba.org/index.php/cbr/user/setLocale/en_US?source=%2Findex.php%2Fcbr%2Farticle%2Fview%2F4309> English </a><li class=locale_fr_CA><a href=https://cbr.cba.org/index.php/cbr/user/setLocale/fr_CA?source=%2Findex.php%2Fcbr%2Farticle%2Fview%2F4309> Français (Canada) </a></ul></div></div><div class="pkp_block block_information"><span class=title> Information 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