Credit Union Atlantic Ltd. v. Roy, (2002) 209 N.S.R.(2d) 241 (CA)

• Judge: Glube, C.J.N.S., Saunders and Oland, JJ.A.
• Court: Court of Appeal of Nova Scotia (Canada)
• Case Date: October 15, 2002
• Jurisdiction: Nova Scotia
• Citations: (2002), 209 N.S.R.(2d) 241 (CA);2002 NSCA 126

Credit Un. Atlantic Ltd. v. Roy (2002), 209 N.S.R.(2d) 241 (CA);

 656 A.P.R. 241

MLB headnote and full text

Temp. Cite: [2002] N.S.R.(2d) TBEd. NO.037

Credit Union Atlantic Limited, a body corporate (appellant) v. Wendy Roy (respondent)

(CA 179574; 2002 NSCA 126)

Indexed As: Credit Union Atlantic Ltd. v. Roy

Nova Scotia Court of Appeal

Glube, C.J.N.S., Saunders and Oland, JJ.A.

October 15, 2002.

Summary:

The defendant executed a mortgage on her home in favour of the plaintiff credit union as security for a line of credit agreement executed by her husband with respect to his business. The husband's business became insolvent. The credit union commenced an action against the defendant wife for fore­closure and sale.

The Nova Scotia Supreme Court, in a decision reported at 202 N.S.R.(2d) 278; 632 A.P.R. 278, dismissed the action. The credit union appealed.

The Nova Scotia Court of Appeal dis­missed the appeal.

Guarantee and Indemnity - Topic 324

The contract - Extent of guarantee - Lines of credit - A wife executed a mortgage in favour of a credit union as security for a $50,000 line of credit obtained by her husband for his business - The line of credit agreement executed by the husband on January 6, 1997, stated that it would expire on November 1, 1997, but it could be renewed on or before that date - No­vember 1, 1997, passed without anything being done - On March 4, 1998, the hus­band signed a new agreement, which pro­vided the same limit of $50,000 - The husband's business failed - The credit union commenced a foreclosure action against the wife - The trial judge dismissed the action, holding that the January 1997 loan agreement had expired and the liabili­ty under the mortgage collateral to it became discharged - The Nova Scotia Court of Appeal affirmed the decision.

Counsel:

David G. Coles and James D. MacNeil, for the appellant;

Stanley W. MacDonald, for the respondent.

This appeal was heard on October 15, 2002, before Glube, C.J.N.S., Saunders and Oland, JJ.A., of the Nova Scotia Court of Appeal. The following judgment of the Court of Appeal was delivered orally by Oland, J.A., on October 15, 2002, and was released in written form on October 16, 2002.