BMP Global Inc. (BMP) was a distributor of non-stick bake ware in British Columbia. BMP was a customer of the Bank of Nova Scotia (BNS) in Vancouver. Hashka and Backman were the two owners of BMP and had personal accounts in the same branch of BNS. BMP received a cheque for $902 563 drawn by First National Financial Corp. on the Royal Bank of Canada (RBC) in Toronto. Hashka deposited the cheque in the BMP account and informed the manager, Richards, that the cheque was a down payment on a distributorship contract with an American company. Richards placed a hold on the cheque for seven days. The cheque cleared and was paid by RBC to BNS and released to BMP. Hashka and Backman paid several creditors and transferred funds to their personal accounts. Ten days later RBC notified Richards that the signatures on the $902 563 cheque were forged. Richards froze the three accounts in his branch and returned the combined balance of $776 000 to RBC. Was Richards justified in freezing and seizing the accounts of BMP, Hashka, and Backman? Can they take action against Richards and BNS? Is RBC responsible for accepting the cheque with the forged signatures?