How can you use a cheque? Only accept cheques from people you know and trust. You can use a cheque to pay someone, or get paid by someone.
Bank of Montrealthe Ontario Court of Appeal revisited defences available to banks under the Bills of Exchange Act in cases of employee cheque fraud. Finding in favour of the appellant banks, the Court of Appeal found that companies that fail to put in place and follow cheque approval policies may be deprived of their strict liability recourse against the banks.
Teva has now filed an application for leave to appeal to the Supreme Court of Canada, whose decision is pending. Where a fraudulent employee misappropriates cheques from its employer, an innocent party, be it the employer or the banks that dealt with the cheques, must typically bear the loss.
When a bank pays the value of a cheque to a person who is not entitled to possession of the cheque, the bank is strictly liable to the drawer of the cheque for the tort of conversion.
The dominant case law on the subject is to the effect that the bank cannot absolve itself of liability by proving that the defrauded employer was somehow negligent. However, Banks do have a defence to the tort of conversion under section 20 5 of the Bills of Exchange Act,1 which provides that "[w]here the payee is a fictitious or non-existing person, the bill may be treated as payable to bearer".
While this provision has existed in Canadian law since the late 19th century, its interpretation remains subject to discord when applied to the actions of fraudulent employees.
The Supreme Court of Canada has previously addressed this issue, notably in the s in Concrete Column Clamps2 and then, in the s in Boma. In Teva Canada Limited v. The former employee then misappropriated the cheques, and deposited them into accounts he had opened, which accepted the cheques for deposit and credited the fraudulent employee with the funds.
After discovering the fraud, the defrauded company sued the banks for converting the cheques. At the Ontario Superior Court of Justice, the Motion Judge ruled in favour of Plaintiff on summary judgment, finding that the banks were liable for converting the cheques and that the fictitious payee defence did not apply in this case.
Applying the majority opinion of the Supreme Court in Boma, the Motion Judge found that the payees were not fictitious or non-existent, as the company "believed at the time that each cheque was generated to satisfy a legitimate obligation to a customer"5, as it "did not at any time intend or authorize [the employee] or his associates to possess or use the cheques for their own personal use"6 and as "[t]he actual account holders were not intended by [the employer company]to be the payees of the cheques.
In support of its decision, the Court of Appeal notably found that no directing mind or responsible officer at the employer company had reviewed the fraudulent cheques, especially since their internal cheque approval policies had not been followed.
This case, if followed, could well reallocate the burden of preventing employee cheque fraud, as between banks and employers. Concrete Column Clamps Ltd. The content of this article is intended to provide a general guide to the subject matter.
Specialist advice should be sought about your specific circumstances.Make a check payable to your name, and then cash it at the bank.
You need a pen, a form of identification and a check from your checking account. The process takes under 5 minutes. Write a check from your account so that it is payable to your name. Fill in the rest of the check with the amount of.
To get your money off of it, you had to write yourself a check, take the card with you to the bank and then do the whole transaction there. It was terrible. permalink. Good sat essay xenophobia topics for english creative writing uea simple english essay video games my yourself essay name narrative expressing opinion essay healthy my trip to france essay year essay on holiday at home celebration essay group study usa.
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Yes you can write a cheque to yourself. When you write a cheque to yourself just write the name of yourself in the “pay” line.
Even when you write a. Feb 23, · Writing for a unanimous court, Justice Laskin reasoned that the payees were fictitious because the company was unable to prove that it intended the payees to receive the proceeds of the cheques 5.
The Supreme Court overturned the Court of Appeal's decision.