Over $343K for home purchase allegedly lost following wrong bank transfer: lawsuit

Canadian Imperial Bank of Commerce signage is pictured in this undated image. (Christopher Katsarov Luna/Bloomberg)

A Manitoba law firm is suing the Canadian Imperial Bank of Commerce (CIBC) and an unidentified individual, referred to in court filings as “John Doe,” after more than $343,000 was allegedly transferred into the wrong account and then drained in a home-purchase deal.

According to a statement of claim filed in the Court of King’s Bench of Manitoba, Taylor McCaffrey LLP was acting for a client in a real estate transaction in July 2024.

The lawsuit alleges that the law firm requested $343,335 from the mortgagee for deposit into its trust account at CIBC’s 1 Lombard Place branch, but the funds never reached the account.

“The firm subsequently learned that due to the incorrect transit number on the requisition, the initial funds were not deposited into the firm’s trust account, but rather John Doe’s account,” reads the court document filed Monday.

The filing alleges that CIBC advised the firm in November 2024 that the funds were “unrecoverable” as they had been depleted from the account of “John Doe”, a CIBC banking client.

“Despite requests, CIBC has refused to provide the identity of John Doe or any associated information,” reads the statement of claim.

The Law Society of Manitoba, who is also listed as a plaintiff, was assigned right title and interest to the missing funds from the mortgagee in exchange for payment, according to the filing.

The filing alleges CIBC breached the duty of care to the plaintiffs by failing to make sure all account information matched the account holder’s name before depositing the funds.

It also claims the bank breached the duty of care by not taking all possible steps to recoup the funds, “which includes involving relevant law enforcement.”

“John Doe knew or ought to have known that the initial funds were deposited into its account by error and that it was not entitled to them. Notwithstanding to this, John Doe withdrew the funds to keep them out of the reach of others,” reads the filing.

It alleges the account holder has been unjustly enriched.

The filing claims the real estate transaction was still completed that summer after replacement funds were successfully deposited.

The court action is seeking judgement in the amount of $343,335, plus interests and costs.

It’s also calling for a court order that CIBC disclose the identity of “John Doe” and any associated information, such as addresses, contact information and the destination of the funds.

A spokesperson for CIBC told CTV News it would not provide comment as the matter is before the courts.

CTV News has reached out to the plaintiffs’ lawyer for comment but has not heard back.

No statement of defence has been filed and none of the claims have been tested in court.