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:
- Business Development Bank of Canada v Druckmann, 2015 ONSC 1517, 39 BLR (5th) 310
- Bhasin v Hrynew, 2014 SCC 71, [2014] 3 SCR 494
- Royal Bank of Canada v 101000039 Saskatchewan Ltd., 2017 SKQB 253, 5 CBR (6th) 203
- Toronto Dominion Bank v Robert McCashew Professional Corp., 1998 ABQB 431, 5 CBR (4th) 14
- Hryniak v Mauldin, 2014 SCC 7, [2014] 1 SCR 87, 366 DLR (4th) 641, 453 NR 51, 314 OAC 1
- Tchozewski v Lamontagne, 2014 SKQB 71, [2014] 7...
