Cormode & Dickson Construction (1983) Ltd. v. Harrison, (1999) 247 A.R. 330 (QBM)

• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: July 09, 1999
• Citations: (1999), 247 A.R. 330 (QBM)

Cormode & Dickson v. Harrison (1999), 247 A.R. 330 (QBM)

MLB headnote and full text

Temp. Cite: [1999] A.R. TBEd. JL.096

Cormode & Dickson Construction (1983) Ltd. (plaintiff) v. Marsh Harrison (defendant)

(Action No. 9803-18272; 1999.ca.ab.qb)

Indexed As: Cormode & Dickson Construction (1983) Ltd. v. Harrison

Alberta Court of Queen's Bench

Judicial District of Edmonton

Funduk, Master in Chambers

July 9, 1999.

Summary:

The plaintiff applied for a summary judg­ment.

A Master of the Alberta Court of Queen's Bench allowed the application.

Guarantee and Indemnity - Topic 1033

Liability of surety to creditor - Construc­tion of contract - Extent or scope of lia­bility of surety - General - A Master of the Alberta Court of Queen's Bench stated that a guarantor could be liable to the creditor, even if the debtor was not, if the guarantor so contracted - See paragraphs 13, 16 to 19, 29.

Guarantee and Indemnity - Topic 2502

Discharge and other defences of surety - General - Defences and rights of primary debtor - Reliance on - A guarantor invoked equitable set-off and argued that his liability to the creditor was to be reduced by the amount that the principal debtor would fetch in an action against the creditor - A Master of the Alberta Court of Queen's Bench rejected the argument and granted summary judgment in favour of the creditor against the guarantor - See paragraphs 16 to 25.

Cases Noticed:

Meridian Developments Ltd. v. Nu-West Group Ltd. (1984), 52 A.R. 248 (C.A.), consd. [para. 17].

Federal Business Development Bank v. Mid-Can Dental Supply Co., [1984] 1 W.W.R. 464; 29 Sask.R. 81 (C.A.), refd to. [para. 19].

First Investors Corp. v. Mehra (1986), 71 A.R. 140 (Q.B. Master), affd. (1987), 84 A.R. 277 (C.A.), refd to. [para. 19].

Creditel of Canada v. Steel-Craft Door Products Ltd. (1996), 191 A.R. 380; 44 Alta. L.R.(3d) 335 (Q.B. Master), refd to. [para. 23].

National Cabinet Lock of Canada Inc. v. Steel-Craft Door Products Ltd. - see Creditel of Canada v. Steel-Craft Door Products Ltd.

Imperial Oil Ltd. v. Whissell Enterprises Ltd. (1985), 62 A.R. 321 (Q.B.), refd to. [para. 27].

W.C. Fast Enterprises v. All-Power Sports (1973) Ltd. (1981), 29 A.R. 483; 16 Alta. L.R.(2d) 47 (C.A.), refd to. [para. 27].

ABC Color and Sound Ltd. et al. v. Royal Bank of Canada (1991), 117 A.R. 271; 2 W.A.C. 271 (C.A.), refd to. [para. 27].

Authors and Works Noticed:

Judge and Grottenhaler, Legal and Equi­table Set-Offs (1991), 70 Can. Bar Rev. 91, pp. 91-92 [para. 24].

Counsel:

J.J. Kueber (Bryan & Company), for the plaintiff;

W.M. Faulkner (Ingersoll & Ingersoll), for the defendant.

This application was heard before Funduk, Master in Chambers, of the Alberta Court of Queen's Bench, Judicial District of Edmon­ton, who delivered the following judgment on July 9, 1999.