Caisse Populaire Beauséjour ltée v. Wry et al., (2012) 391 N.B.R.(2d) 231 (TD)

• Judge: Rideout, J.
• Court: Court of Queen's Bench of New Brunswick (Canada)
• Case Date: June 22, 2012
• Jurisdiction: New Brunswick
• Citations: (2012), 391 N.B.R.(2d) 231 (TD);2012 NBQB 234

Caisse Pop. v. Wry (2012), 391 N.B.R.(2d) 231 (TD);

    391 R.N.-B.(2e) 231; 1013 A.P.R. 231

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Temp. Cite: [2012] N.B.R.(2d) TBEd. JL.021

Renvoi temp.: [2012] N.B.R.(2d) TBEd. JL.021

La Caisse Populaire Beauséjour ltée (plaintiff) v. John David Wry, Michael Haywood and Carolyn Joyce Holmes, Executrix of the Estate of George Elliott Holmes (defendants) and Ammon Developments Inc. (third party) and Vail's Fabric Services Ltd., KMR Holdings Inc., and New System Laundry & Cleaners Ltd. (fourth parties)

(M/C/0005/10; 2012 NBQB 234; 2012 NBBR 234)

Indexed As: Caisse Populaire Beauséjour ltée v. Wry et al.

Répertorié: Caisse Populaire Beauséjour ltée v. Wry et al.

New Brunswick Court of Queen's Bench

Trial Division

Judicial District of Moncton

Rideout, J.

July 10, 2012.

Summary:

Résumé:

This action involved mortgage financing and additional security documentation including guarantees. The plaintiff applied for summary judgment. The defendants also applied for summary judgment.

The New Brunswick Court of Queen's Bench, Trial Division, dismissed the plaintiff's motion and allowed the defendants' motion.

Guarantee and Indemnity - Topic 1055

Liability of surety to creditors - Action against surety - Demand for payment from surety - What constitutes a demand on the surety - This action involved mortgage financing and additional security documentation including guarantees - The plaintiff applied for summary judgment - The defendants also applied for summary judgment - The New Brunswick Court of Queen's Bench, Trial Division, dismissed the plaintiff's motion and allowed the defendants' motion - The letters alleged by the Caisse Populaire to constitute a demand for payment did not provide the necessary clear demand - The correspondence used words; "La Caisse is not prepared to allow the situation to continue, La Caisse will have no choice but to consider legal action pursuant to the Personal Guarantee, situation is completely unacceptable and the lawyer for La Caisse will have no choice but to advise La Caisse to commence enforcement procedures which can include suing all Guarantors" - The law in New Brunswick required a demand to be just that, a demand, and it was a condition precedent to an action on a guarantee - The demand had to be unequivocal - The wording here was equivocal and did not constitute a demand under the guarantee.

Garantie et indemnité - Cote 1055

Responsabilité de la caution envers le créancier - Action contre la caution - En quoi consiste une demande contre la caution - [Voir Guarantee and Indemnity - Topic 1055 ].

Cases Noticed:

Cannon v. Lange et al. (1998), 203 N.B.R.(2d) 121; 518 A.P.R. 121 (C.A.), refd to. [para. 20].

Shareline Systems Ltd. v. N.B. (2001), 235 N.B.R.(2d) 162; 607 A.P.R. 162 (C.A.), refd to. [para. 20].

Bank of Nova Scotia v. Mabey and Mabey (1979), 26 N.B.R.(2d) 536; 55 A.P.R. 536 (Q.B.), refd to. [para. 24].

Royal Bank of Canada v. Ruben (1979), 24 N.B.R.(2d) 707; 48 A.P.R. 707; 1978 CarswellNB 346 (Q.B.), refd to. [para. 24].

Bank of Montreal v. Agnew and Hawkes (1986), 72 N.B.R.(2d) 276; 183 A.P.R. 276 (T.D.), refd to. [para. 25].

Irly Distributors Ltd. v. Powell River Town Centre Ltd. et al., [2005] B.C.T.C. 1524; 2005 BCSC 1524, refd to. [para. 25].

Canada Mortgage and Housing Corp. v. Elbarbari (1996), 145 Sask.R. 250; 63 A.C.W.S.(3d) 1168 (Q.B.), refd to. [para. 25].

Bank of Nova Scotia v. Battiste (1979), 22 Nfld. & P.E.I.R. 192; 58 A.P.R. 192 (Nfld. T.D.), refd to. [para. 25].

Alberta Opportunity Co. v. Schinnour, [1990] A.J. No. 1125 (C.A.), refd to. [para. 26].

Royal Bank of Canada v. Ruben (1980), 29 N.B.R.(2d) 612; 66 A.P.R. 612 (C.A.), refd to. [para. 28].

Authors and Works Noticed:

McGuiness, Kevin Patrick, The Law of Guarantee (2nd Ed.), ss. 6.26, 6.27 [para. 23].

Counsel:

Avocats:

Rémy Boudreau, on behalf of La Caisse Populaire Beauséjour ltée;

Richard E. DeBow, Q.C., on behalf of the John David Wry and Michael Haywood;

Bruce R. Phillips, on behalf of Carolyn Joyce Holmes, Executrix of the Estate of George Elliott Holmes and Ammon Developments Inc.;

Melanie Cassidy, on behalf of Vail's Fabric Services Ltd., KMR Holdings Inc., and New System Laundry & Cleaners Ltd.

These motions were heard on June 22, 2012, by Rideout, J., of the New Brunswick Court of Queen's Bench, Trial Division, Judicial District of Moncton, who delivered the following decision on July 10, 2012.