When a lawsuit was filed against a Canadian airline, my task was to determine defences. The facts started with a Canadian bank sending Bank of Greece bank notes by air in a package from Vancouver to the Bank of Greece in Athens. The package did not arrive. The loss of the banknotes was unexplained.
The Bank of Greece claimed against the airline. The insurers for the airline honoured the insurance policy and paid for the lost money to the Bank of Greece.
Sometime later, some former employees of the airline in Montreal were found to have been buying chalets and snowmobiles. The RCMP investigated. They found that the package of money had been taken off the aircraft in Montreal. There was a criminal prosecution and some of the money was recovered.
The RCMP sent the recovered money to the Bank of Greece. The Bank of Greece did not know what to do with it. The bank had already been reimbursed for the loss. It sent the money to the insurers. When the insurers found out about the theft of the money, they claimed against the airline. They said that they should not have paid the airline for the loss. Theft was a loss outside the protection of the insurance policy. It was gross misconduct. The insurers commenced a lawsuit in British Columbia Supreme Court to recover the money from the airline.
With defences developed and filed in Supreme Court, negotiation eventually settled the case.
