CITADEL GENERAL ASSURANCE CO V LLOYD’S BANK CANADA

(1994) 3 Re LR 311

Canada Alberta Queen’s Bench

Before Marshall J

Trust - Statutory trust - Constructive trust - Whether bank liable to third party as constructive trustee - Insurance agent having financial difficulties and using trust funds to cover its own overdraft - Whether bank knew monies were trust funds - Bank benefiting from agent’s breach of trust - Obligation on bank to make inquiry - Insurance Act, RSA 1980, sect 124(1) - Prejudgment interest - Judgment Interest Act SA 1984.