Rigby Foods, Inc. v. B.C. Frozen Foods Ltd.
Rigby Foods, Inc.
Law Firm / Organization
Hammerco Lawyers LLP
Lawyer(s)

Mikis Manolis

B.C. Frozen Foods Ltd.
Law Firm / Organization
Fasken Martineau DuMoulin LLP
Lawyer(s)

Gavin Cameron

Background: The case involved Rigby Foods, Inc. suing B.C. Frozen Foods Ltd. over unpaid invoices totaling $297,440 USD after payments were mistakenly sent to a fraudster's account due to phishing.

Legal Issues:The core legal issues centered on breach of contract and negligence related to cybersecurity practices.

Arguments:

  • Rigby Foods' Position: Claimed B.C. Frozen Foods was responsible for ensuring payments were made to the correct account and sought recovery of the funds paid to the fraudster.
  • B.C. Frozen Foods' Defense: Argued that the fraudulent payment instructions originated from a security breach within Rigby Foods' email system, thus absolving them of liability under the claim that they followed standard payment instructions.

Held: The court examined the circumstances of the phishing fraud and the responsibilities of each party in securing their communication systems. The dispute focused on which party's email system was compromised and their respective cybersecurity measures. The court set aside the garnishing order previously obtained by Rigby Foods and directed the registrar to return the garnished amount, with interest, to B.C. Frozen Foods Ltd. Costs of the application were awarded to B.C. Frozen Foods but were not payable immediately.

Costs/Damages Awarded: No specific total amount of costs or award was mentioned in the document for the successful party, B.C. Frozen Foods Ltd., aside from the general direction to cover the application costs.

Supreme Court of British Columbia
S224922
Civil litigation
Defendant