High Mountain Feed Distributors Ltd. v. Paw Pleasers Ltd. et al., (2004) 188 Man.R.(2d) 288 (QBM)

• Court: Court of Queen's Bench of Manitoba (Canada)
• Case Date: September 27, 2004
• Jurisdiction: Manitoba
• Citations: (2004), 188 Man.R.(2d) 288 (QBM);2004 MBQB 220

High Mountain Feed v. Paw Pleasers (2004), 188 Man.R.(2d) 288 (QBM)

MLB headnote and full text

Temp. Cite: [2004] Man.R.(2d) TBEd. NO.007

High Mountain Feed Distributors Ltd. (plaintiff) v. Paw Pleasers Limited and Andrea McCann-Suchower (defendants)

(CI 03-01-34261; 2004 MBQB 220)

Indexed As: High Mountain Feed Distributors Ltd. v. Paw Pleasers Ltd. et al.

Manitoba Court of Queen's Bench

Winnipeg Centre

Sharp, Master

September 27, 2004.

Summary:

The plaintiff moved for summary judgment for the value of pet supplies which it sold to the defendants, but was never paid for.

A Master of the Manitoba Court of Queen's Bench granted the motion.

Guarantee and Indemnity - Topic 3031

Discharge and other defences of surety - Changes in principal contract - Material changes - The plaintiff moved for summary judgment for the value of pet supplies which it sold to the defendants, but was never paid for - The plaintiff based its claim on a credit agreement with the defendants, with the individual defendant (the president and sole shareholder of the defendant company) as a personal guarantor - The defendants argued that the guarantee signed by the individual defendant was not valid, or, that it was invalidated by the unilateral raising of the amount of the credit limit originally shown on the application form - A Master of the Manitoba Court of Queen's Bench rejected the argument - While a material change in the risk of a guarantee which was not consented to by the guarantor would discharge the guarantor, there was precedent to support the contention that a surety would be bound where he had full knowledge of, and participated in, the making of an alteration - As president and officer of the defendant corporation, the individual defendant must have not only been aware of the increases in credit, but actively participated - See paragraphs 13 to 16.

Cases Noticed:

Bellboy Corp. v. 3763383 Manitoba Ltd. (2002), 164 Man.R.(2d) 17; 2002 MBQB 69, refd to. [para. 4].

E.A. Towns Ltd. v. Harvey et al., [1945] 2 D.L.R. 782 (B.C.S.C.), affd. [1946] 2 D.L.R. 72 (B.C.C.A.), refd to. [para. 15].

Authors and Works Noticed:

McGuinness, Kevin Patrick, The Law of Guarantee: A Treatise on Guarantee, Indemnity and the Standby Letter of Credit (1st Ed. 1986), paras. 10.23, 10.24 [para. 15].

Counsel:

James A. Mercury, for the plaintiff;

Timothy J. Fry, for the defendants.

This motion was heard before Sharp, Master, of the Manitoba Court of Queen's Bench, Winnipeg Centre, who delivered the following decision on September 27, 2004.