Massey-Ferguson Industries Ltd. v. Waddell et al., (1984) 29 Man.R.(2d) 241 (CA)

• Judge: Monnin, C.J.M., Matas and O'Sullivan, JJ.A.
• Court: Court of Appeal (Manitoba)
• Case Date: August 20, 1984
• Jurisdiction: Manitoba
• Citations: (1984), 29 Man.R.(2d) 241 (CA)

Massey-Ferguson Ind. v. Waddell (1984), 29 Man.R.(2d) 241 (CA)

MLB headnote and full text

Massey-Ferguson Industries Limited v. Waddell et al.

(Suit No. 107/84)

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

Manitoba Court of Appeal

Monnin, C.J.M., Matas and O'Sullivan, JJ.A.

August 20, 1984.

Summary:

A creditor sued the defendant Waddell under a guarantee. The action against all other defendants was discontinued.

The Manitoba Court of Queen's Bench, in a judgment reported (1984), 28 Man.R.(2d) 52, dismissed the action on the ground that Waddell had terminated his liability under the guarantee by written notice. The creditor appealed.

The Manitoba Court of Appeal, Matas, J.A., dissenting, dismissed the appeal, because the written notice did not constitute a clear and explicit revocation of liability under the guarantee.

Guarantee and Indemnity - Topic 2505

Discharge and other defences of surety - Revocation by surety - A guarantor's letter advised the creditor to "Kindly accept this letter as my cancellation of my personal guarantee" - The Manitoba Court of Appeal held that the letter did not constitute a clear and explicit revocation of the guarantor's liability - The court stated that the letter was nothing more than a request that liability under the guarantee be terminated - See paragraphs 5 to 17.

Cases Noticed:

Royal Bank of Canada v. Dickson (1976), 7 N.R. 262; 13 N.S.R.(2d) 672; 9 A.P.R. 672; 66 D.L.R.(3d) 242 (S.C.C.), refd to. [paras. 13, 20 to 23].

Authors and Works Noticed:

Corpus Juris Secundum, vol. 38, p. 1175 [para. 14].

Counsel:

Paul L. Jensen, for the appellant;

L.J. Thornborough, for the respondent.

This appeal was heard on June 13, 1984, before Monnin, C.J.M., Matas and O'Sullivan, JJ.A., of the Manitoba Court of Appeal.

On August 20, 1984, the judgment of the Manitoba Court of Appeal was delivered and the following opinions were filed:

Monnin, C.J.M. - see paragraphs 1 to 18;

Matas, J.A., dissenting - see paragraphs 19 to 49;

O'Sullivan, J.A., concurred with Monnin, C.J.M.