With respect to the knowing receipt claim, Justice Horkins held that the claim disclosed a reasonable cause
of action, as it pled the
existence of a trust, a breach
of that trust,
constructive knowledge of the breach
of trust on the part
of BMO (
knowledge of facts sufficient to put a reasonable person on notice or inquiry
of the breach
of trust), and the receipt
of trust property by BMO for its own use and benefit by way
of service fees associated with the impugned transactions.