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Tort of Conversion

February 14, 2024

Thursday, May 19, 2016 

Tran v. Chung, 2016 ONCA 378:  Are Banks Liable for Fraudulent Behavior? – The Tort of Conversion

We’ve all heard of theft and fraud, but did you know that a tort is associated with those that are not involved in criminal law?

The tort of conversion essentially details the unlawful acquisition, use, or destruction of, or interference with, a person’s possessions. 

In one such case, Tran v. Chung, decided at the level of the Ontario Court of Appeal, the facts of the case were that Tran believed she had been persuaded to provide a bank draft from BMO fraudsters, who had taken her bank draft to a third party. BMO accepted the bank draft and deposited it to the third party’s line of credit, which was then withdrawn and given to one of the fraudsters. 

Following these occurrences, Tran began an action against both the fraudsters and BMO, essentially arguing that BMO committed the tort of conversion. As such, she was asking for a summary judgment against BMO for $90,190, to which BMO responded with a motion to dismiss the action. 

The Ontario Superior Court dismissed Tran’s claim, but upon her appeal, the Ontario Court of Appeal ruled in her favour. 

In another case referenced by the court (Boma Manufacturing Ltd. V. Canadian Imperial Bank of Commerce), quoting from paragraph 36: “A bank that collects a sum of money under an instrument for a person not entitled to it is treated as having converted the instrument.” In Tran’s case, the instrument is the banker’s cheque. 

Have You Been Affected By Fraud?

If you’ve been victimized by fraudulent behaviour, don’t wait to take action. Experienced civil fraud lawyers at Karrass Law can help you take action. Robert Karrass and our experienced legal team will advocate strongly for you and, if necessary, will help you file and pursue a civil suit for damages to recover losses. 

For appeals, civil fraud cases, and more, trust the experienced team at Karrass Law. Book a legal consultation with our experts.


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