All posts tagged: BMO

BMO ordered to pay nearly $27 million to a Quebec company

The Bank of Montreal has been ordered by the Quebec Court of Appeal to pay a Quebec enterprise a staggering $26.8 million, including interest and costs, for acting in bad faith, the second time in less than a year that Canada’s fourth largest bank was on the losing end of a multi-million dollar lawsuit in Quebec.

The ruling, the latest in a recent series of judgments that clearly signals that the Quebec Court of Appeal has jettisoned restraint when awarding damages against organizations that act in bad faith, has sharply divided Quebec’s legal community, with some calling it a wake-up call for financial institutions while others grumble that the ruling makes for bad law.

“This latest judgment reinforces what the Court of Appeal has said previously, and that is, banks are bound like any businessman to carry out dealings in good faith,” remarked Gerald Kandestin, a senior partner with Kugler Kandestin LLP