What liability does a defendant have in a fraudulent transaction?
Ontario, Canada
The following excerpt is from Ray v. Willson, 1911 CanLII 22 (ON CA):
Again, liability in such cases as this is put frequently—and it may, perhaps, be said very generally in the Courts of the United States of America—on the well-known principle that where one of two innocent persons must suffer from the fraud of a third person, the loss ought to fall upon him who enabled such person to commit the fraud: see London and South Western Bank v. Wentworth (1880), 5 Ex.D. 96; and in that net the defendant is, I think, encompassed.
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