TORONTO -- An Ontario court ruled last week that Toronto Dominion Bank misused the equivalent of $11 million that was in trust accounts for housing construction projects.

Morris & Morris, a Toronto law firm, said the decision could have "significant implications" for the way many Canadian financial institutions handle residential real estate construction projects.

The court ruled that the Toronto bank used an accounting system that was inappropriate for companies in the construction industry.

Morris & Morris represented the accounting firm of Arthur Andersen Inc., which was serving as lien trustee for creditors seeking payment from the accounts.

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