In ATB v Real Industries 333 Corp (2023 ABKB 503 & 598), the Court of King’s Bench of Alberta dealt with a claim by ATB Financial for recovery of $31 million held by Hardik and Sonika Patel after an unauthorized transfer.
Timeline:
- November 2022: The Patels transferred $77 million CAD from a Bank of Montreal (BMO) account into their company’s ATB account (RE3C) and then moved the money to personal and third-party accounts. The funds originated from a non-existent wire transfer.
- November 28, 2022: ATB learned the transfer was fraudulent and filed a claim, freezing the Patel’s Toronto-Dominion Bank (TD) accounts.
Key Decisions:
- 2023 ABKB 503 (September 1, 2023): ATB sought summary judgment for recovery under unjust enrichment and knowing receipt. The court ruled in ATB’s favor on unjust enrichment, finding the Patels unjustly enriched and ATB deprived. A constructive trust was imposed on the $31 million in TD accounts. The knowing receipt claim was dismissed due to lack of evidence of intent.
- 2023 ABKB 598 (October 23, 2023): The court finalized costs and interest. It upheld the inclusion of TD Waterhouse funds in the order, awarded $28,574.70 in costs to ATB, and approved pre-judgment interest of $798,356.33.
Final Outcome:
ATB successfully recovered the $31,826,930.33 (including the principal, costs, and interest).
