Federal Business Development Bank v. Dunn, (1989) 74 Sask.R. 180 (CA)

• Judge: Hall, Vancise and Sherstobitoff, JJ.A.
• Court: Court of Appeal (Saskatchewan)
• Case Date: February 21, 1989
• Jurisdiction: Saskatchewan
• Citations: (1989), 74 Sask.R. 180 (CA)

FBDB v. Dunn (1989), 74 Sask.R. 180 (CA)

MLB headnote and full text

Federal Business Development Bank (plaintiff/respondent) v. Pearl Dunn (defendant/appellant)

(No. 8587)

Indexed As: Federal Business Development Bank v. Dunn

Saskatchewan Court of Appeal

Hall, Vancise and Sherstobitoff, JJ.A.

February 21, 1989.

Summary:

The plaintiff bank sued the defendant under two guarantees.

The Saskatchewan Court of Queen's Bench, in a decision reported in 35 Sask.R. 4, allowed the bank's action. The defendant guarantor appealed.

The Saskatchewan Court of Appeal dismissed the appeal.

Creditors and Debtors - Topic 1065

Debtors' rights - Before payment - Reasonable notice of requirement to pay - The Saskatchewan Court of Queen's Bench set out the considerations in determining whether a creditor gave a debtor a reasonable period of time to meet the demand for payment - The Saskatchewan Court of Appeal affirmed the decision.

Creditors and Debtors - Topic 1065

Debtors' rights - Before payment - Reasonable notice of requirement to pay - A creditor demanded immediate payment of considerable monies from a debtor at a time it knew of her absence from the country - The debtor was a well-known customer of the creditor and was capable of raising the necessary funds - Even with a written authorization from the debtor, the creditor neglected to discuss the matter with the debtor's agent - The creditor, however, delayed enforcement of payment, during which time the debtor did nothing - The Saskatchewan Court of Appeal affirmed that in the circumstances the debtor had a reasonable time to meet the demand for payment.

Estoppel - Topic 1163

Estoppel in pais (by conduct) - Representation by conduct - Practice or course of conduct - A guarantor appointed an agent to deal with the creditor - The creditor agreed that no further action would be taken against the guarantor without first contacting the agent - The Saskatchewan Court of Appeal affirmed that the agreement was not conduct which would estop the creditor from acting against the guarantor, especially where the agent was aware from other sources of the principal debtor's impending difficulties.

Guarantee and Indemnity - Topic 2610

Discharge and other defences of surety - Release - By act of creditor - General - The Saskatchewan Court of Appeal affirmed that a creditor who dealt with a purchaser of a business whose debts were guaranteed did not, by such conduct, terminate the guarantor's liability.

Counsel:

Y. Wilkinson, for the appellant;

D.B. Heffernan, for the defendant.

This appeal was heard before Hall, Vancise and Sherstobitoff, JJ.A., of the Saskatchewan Court of Appeal, whose decision was delivered orally by Sherstobitoff, J.A. on February 21, 1989.