Digest: Business Development Bank of Canada v Naber, 2018 SKQB 26

Date:January 19, 2018

Reported as: 2018 SKQB 26

Docket Number: QBG 420/16 JCS , QB17419

Court: Court of Queen's Bench

Date: 2018-01-19

Judges:

  • Gabrielson

Subjects:

  • Civil Procedure � Queen�s Bench Rules � Summary Judgment

Digest: The plaintiff applied for an order of summary judgment against the defendant on account of a personal guarantee. The defendant made the personal guarantee in respect of a loan to a corporation with which he was associated. The plaintiff issued a formal demand against the corporation for its outstanding debt and concurrently demanded payment from the defendant pursuant to his personal guarantee. The plaintiff subsequently transferred all its debt security other than the personal guarantee to a third party and then commenced action against the defendant. The defendant acknowledged the guarantee but said that the plaintiff failed to act in good faith by entering into the assignment of debt without his knowledge. He further stated that the plaintiff could and should have been paid in full for the debt of the corporation by virtue of the assignment.
HELD: The court ordered summary judgment in favor of the plaintiff. There was no triable issue. The facts were not in dispute. There was no evidence of bad faith on the part of the plaintiff. Further, the actions taken by the plaintiff were specifically provided for in the guarantee. Where the terms of a guarantee are clear, a bank can enforce the guarantee regardless of how it dealt with its security.

Rules Considered:

  • QB Rule 7-5
  • QB Rule 7-2

Cases Considered:

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