Date Closed

December 20, 2006

Lead Office

Toronto

McCarthy Tétrault achieved significant success on behalf of The Bank of Nova Scotia in extended litigation against a group of companies carrying on business as "GPay Guaranteed Payment” (“GPay”). GPay and its related companies are a money services business claiming to be the first business to provide for on-line payment for goods and services by direct debit from the payor’s bank accounts. In order to carry on its business, GPay requires banking services and accounts from Canadian Chartered Banks. To conduct its business, GPay requires online disclosure by a banking customer of the customer’s confidential internet banking password and bank card number. This disclosure is contrary to the terms of the Bank’s Cardholder Agreement and contrary to Bank policy. In May, 2005, BNS became aware of the manner in which GPay carries on business including the required disclosure of the Bank customer’s confidential internet password and bank card number. As a result, BNS terminated all accounts and services provided to GPay. The litigation was conducted in two forums, the Court of Queen’s Bench of Alberta and the Competition Tribunal. McCarthy Tétrault was successful in both.