What happens when an innocent error results in a $4,351.36 claim?

Apr 24th, 2020 | By FCT

When Harvey Wong*, the lawyer responsible for receiving the closing funds from clients located in the Cayman Islands for the purchase of a property in Ontario, mistakenly provided the wrong wiring instructions, it was a simple wrong number on the transfer form. It became much more than that.

Harvey discovered his error when following up on the incoming funds, and realized the funds had gone to the wrong bank. To resolve the error, the receiving bank had to send the funds back to the clients in the Cayman Islands, who then had to resend another wire, this time with the correct wiring instructions. To make matters worse, the exchange rate had changed for the worse since the first transfer. Between the rate difference and the extra transfer fees, Harvey’s clients ended up out of pocket $4,351.36. Naturally, they expected to be compensated for their loss.

Fortunately, Harvey had E&O Complete with FCT. E&O Complete applies to both commercial and residential deals and provides two levels of protection. The first is for claims greater than $10,000, where the policy will cover any deductible or claims history surcharge levied by the mandated primary errors or omissions insurer. The second level of protection is for claims under $10,000, where the policy covers the liability of the insured arising from an error or omission in providing legal services.

After reviewing Harvey’s case, FCT issued his firm a cheque for $4,351.36.

The clients were duly compensated, and Harvey avoided paying out of his own pocket.

No matter how careful you are, everyone makes mistakes. It’s reassuring to know that when you do make a mistake, however innocently, E&O Complete from FCT is there as a safety net.

For coverage like Harvey’s, sign up for E&O Complete and get more protection.



* Name changed to protect the privacy of the insured


Insurance by FCT Insurance Company Ltd. Services by First Canadian Title Company Limited. The services company does not provide insurance products. This material is intended to provide general information only. For specific coverage and exclusions, refer to the applicable policy. Copies are available upon request. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.


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Categories: FCT, Legal Professionals

4 Responses to “What happens when an innocent error results in a $4,351.36 claim?”

  1. FCT says:

    Hi Frederic,
    Thanks for the heads-up. I will pass along your concerns to IT.


  2. FCT says:

    Hi Forrest,

    Write about what you know and love. WordPress can help with the platform.


  3. Nancie says:

    What happens when a lawyer does not disclose (on behalf of his client) at the date of policy that there may be issues with Title claims known to him?

    • FCT says:

      Hi Nancie,
      It sounds like your questions relate to exclusions to coverage for known issues. The language of the policy talks about issues that are known by “you” or known by the “Insured.” The expectation is that a lawyer will disclose all known issues but at the end of the day the language of the policy dealing with exclusions talks about matters known to the insured. Please note that any and all claims will be adjudicated on their merits based on the facts presented to FCT and this answer is general information only.


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