Bell (Charles R.) Ltd. v. Baldwin, (2001) 199 Nfld. & P.E.I.R. 110 (NFTD)

• Judge: Russell, J.
• Court: Supreme Court of Newfoundland and Labrador (Canada)
• Case Date: March 30, 2001
• Jurisdiction: Newfoundland and Labrador
• Citations: (2001), 199 Nfld. & P.E.I.R. 110 (NFTD)

Bell Ltd. v. Baldwin (2001), 199 Nfld. & P.E.I.R. 110 (NFTD);

    600 A.P.R. 110

MLB headnote and full text

Temp. Cite: [2001] Nfld. & P.E.I.R. TBEd. AP.005

Charles R. Bell Limited (plaintiff) v. Anthony Baldwin (defendant)

(1999 St. J. No. T 1574)

Indexed As: Bell (Charles R.) Ltd. v. Baldwin

Newfoundland Supreme Court

Trial Division

Russell, J.

March 30, 2001.

Summary:

The plaintiff sued the defendant on a guarantee.

The Newfoundland Supreme Court, Trial Division, dismissed the action.

Guarantee and Indemnity - Topic 2665

Discharge and other defences of surety - Acts of creditor - Acts affecting surety's risk - Baldwin guaranteed a line of credit that the plaintiff had granted to a store owned by M.R.B. - M.R.B.'s owner opened a second store owned by MBEB - M.R.B. ceased its operations - All orders received by the plaintiff from MBEB were charged to M.R.B.'s account - The plaintiff received payment by cheques on which the name MBEB appeared - Receipts were issued to M.R.B. - A monthly invoice was sent to M.R.B. at the new store's location -M.R.B.'s line of credit went into default - The plaintiff sued Baldwin for payment - The Newfoundland Supreme Court, Trial Division, held that Baldwin had been discharged from liability under the guaran­tee and dismissed the action - Baldwin had not consented to M.R.B. being responsible for MBEB's purchase orders - That change constituted a material alteration to the terms of the guarantee and resulted in a change in Baldwin's risk.

Guarantee and Indemnity - Topic 2991

Discharge and other defences of surety - Changes in the principal contract - What constitute - [See Guarantee and Indem­nity - Topic 2665 ].

Guarantee and Indemnity - Topic 2992

Discharge and other defences of surety - Changes in the principal contract - Failure to inform surety - [See Guarantee and Indemnity - Topic 2665 ].

Cases Noticed:

Manulife Bank of Canada v. Conlin et al., [1996] 3 S.C.R. 415; 203 N.R. 81; 94 O.A.C. 161; 1996 Carswell Ont. 3941, refd to. [para. 18].

Counsel:

Deborah L.J. Hutchings, for the plaintiff;

Ronald A. Cole, for the defendant.

This action was heard by Russell, J., of the Newfoundland Supreme Court, Trial Divi­sion, who delivered the following decision on March 30, 2001.