Massey-Ferguson Industries Ltd. v. Bond et al., (1986) 42 Man.R.(2d) 4 (CA)

• Judge: Matas, Huband and Philp, JJ.A.
• Court: Court of Appeal (Manitoba)
• Case Date: May 08, 1986
• Jurisdiction: Manitoba
• Citations: (1986), 42 Man.R.(2d) 4 (CA)

Massey-Ferguson Ind. Ltd. v. Bond (1986), 42 Man.R.(2d) 4 (CA)

MLB headnote and full text

Massey-Ferguson Industries Limited v. Bond, Bond, Bond and Marrington

(Suit No. 22/86)

Indexed As: Massey-Ferguson Industries Ltd. v. Bond et al.

Manitoba Court of Appeal

Matas, Huband and Philp, JJ.A.

June 3, 1986.

Summary:

Massey-Ferguson sued the defendants as the guarantors of the debt of Teulon Farm Equipment Ltd.

The Manitoba Court of Queen's Bench allowed the action. See paragraphs 28 to 56 below. One of the guarantors appealed.

The Manitoba Court of Appeal allowed the appeal and held that the guarantor was discharged.

Guarantee and Indemnity - Topic 3025

Discharge and other defences of surety - Changes in the principal contract - New agreement - An officer of a corporation executed dealership agreements with Massey- Ferguson - On the same day the officer also signed a personal guarantee - Years later the corporation and Massey-Ferguson executed replacement agreements with substantial changes in terms - The Manitoba Court of Appeal held that in the absence of express provisions otherwise, the guarantee was limited to the earlier agreements - See paragraphs 16 to 19 - The court held that the terms of the guarantee did not contemplate that the parties would replace the earlier agreements and still hold the officer liable - Accordingly, the officer was discharged because of changes in the principal contract, which were made without his consent or notice to him - See paragraphs 20 to 25.

Cases Noticed:

Sanderson v. Aston (1873), L.R. 8 Exch. 73, refd to. [para. 18].

Holland-Canada Mortgage Company Limited v. Hutchings, [1936] S.C.R. 165, refd to. [paras. 23, 54].

Hayes, Trustee of Preload Co. v. City of Regina (1960), 20 D.L.R.(2d) 586 (S.C.C.), refd to. [para. 54].

National Bank of Canada v. Rosario et al. (1984), 60 A.R. 8; 35 Alta. L.R.(2d) 376, refd to. [para. 54].

Bauer v. Bank of Montreal (1980), 32 N.R. 191; 110 D.L.R.(3d) 424 (S.C.C.), refd to. [para. 54].

Traders Finance Corp. Ltd. v. Brewster (1976), 64 D.L.R.(2d) 554 (B.C.S.C.), refd to. [para. 54].

Industrial Acceptance Corp. Ltd. v. Lakeland Lumber Ltd. (1960), 26 D.L.R.(2d) 480 (B.C.S.C.), refd to. [para. 54].

Razzell Holdings Ltd. v. Alberta Commercial Corp. (1977), 6 A.R. 79 (T.D.), refd to. [para. 54].

E.A. Towns Ltd. v. Harvey, [1945] 2 D.L.R. 782 (B.C.S.C.); [1946] 2 D.L.R. 72 (B.C.C.A.); [1946] 4 D.L.R. 160 (S.C.C.), refd to. [para. 54].

Levy Brothers Company v. Sole et al., [1945] O.W.N. 989 (C.A.), refd to. [para. 54].

Alberta Opportunity Company v. Zen, [1984] 3 W.W.R. 385 (B.C.C.A.), refd to. [para. 54].

J.R. Watkins Medical Company v. Gray et al., [1920] 2 W.W.R. 588, refd to. [para. 54].

Marvco Color Research v. Harris, [1982] 2 S.C.R. 774; 45 N.R. 302, refd to. [para. 54].

Bank of Montreal v. Wilder (1983), 149 D.L.R.(3d) 193 (B.C.C.A.), refd to. [para. 54].

Smith v. Brandram (1841), 2 Man. & G., 243 (Q.B.), refd to. [para. 54].

Peppin v. Cooper (1819), 2 B & ALD., 431 (K.B.), refd to. [para. 54].

Kitson v. Julian (1855), 4 EL. & BL., 854 (Q.B.), refd to. [para. 54].

Tayleur v. Wilden (1868), L.R. 3 Ex. 303, refd to. [para. 54].

Sanderson v. Aston (1873), L.R. 8 Ex. 73, refd to. [para. 54].

Bausch & Lomb Optical Company Limited v. Moresby Developments Ltd., [1975] 3 W.W.R. 324 (B.C.C.A.), refd to. [para. 54].

Plastic Decoration and Papier-Mache Company (Limited) v. Massey-Mainwaring (1895), 11 T.L.R. 205 (Q.B.), refd to. [para. 54].

Modern Woman v. Canada Permanent (1984), 27 Man.R.(2d) 1 (C.A.), refd to. [para. 54].

Cascade Organ Centre Ltd. v. Craig (1978), 11 A.R. 304 (S.C.), refd to. [para. 54].

Ampex of Canada Limited v. Thomson et al. (1979), 33 A.R. 260; 11 Alta. L.R.(2d) 303 (Q.B.), refd to. [para. 54].

Doe v. Canadian Surety Company, [1937] S.C.R. 1, refd to. [para. 54].

Burnes v. Trade Credits Ltd., [1981] 2 All E.R. 122 (P.C.), refd to. [para. 54].

Bank of Montreal v. Perron, [1982] 6 W.W.R.; 18 Man.R.(2d) 418 (C.A.), refd to. [para. 54].

Bank of Nova Scotia v. Bulych, [1984] 3 W.W.R. 746; 32 Sask.R. 181 (Q.B.), refd to. [para. 54].

Authors and Works Noticed:

Chitty on Contracts (25th Ed. 1983), vol. 2 [paras. 13, 54].

Halsbury's Laws of England (4th Ed.), vol. 20, para. 253 [para. 13].

DeColyar, Law of Guarantees (1887), p. 278 [para. 17].

Counsel:

W.S. Gange, for the appellant;

R.J. Handlon, for the respondent.

This appeal was heard before Matas, Huband and Philp, JJ.A., of the Manitoba Court of Appeal on May 8, 1986. The decision of the Court of Appeal was delivered on June 3, 1986, by Philp, J.A.