Mister Broadloom Corp. (1968) Ltd. v. Bank of Montreal and Clarkson Co., (1983) 1 O.A.C. 52 (CA)

• Judge: Lacourcière, Blair and Tarnopolsky, JJ.A.
• Court: Court of Appeal (Ontario)
• Case Date: December 12, 1983
• Jurisdiction: Ontario
• Citations: (1983), 1 O.A.C. 52 (CA)

Mister Broadloom Corp. v. Bk. of Mtrl. (1983), 1 O.A.C. 52 (CA)

MLB headnote and full text

Mister Broadloom Corp. (1968) Ltd. v. Bank of Montreal and Clarkson Co. Ltd.

Indexed As: Mister Broadloom Corp. (1968) Ltd. v. Bank of Montreal and Clarkson Co.

Ontario Court of Appeal

Lacourcière, Blair and Tarnopolsky, JJ.A.

December 12, 1983.

Summary:

A company owed a bank $600,000 payable "on demand". The bank demanded payment of the loan after giving the debtor notice of less than one hour. The debtor sued the bank for damages for failing to give the debtor reasonable time to meet the demand for payment. The trial court dismissed the debtor's claim. The debtor appealed.

The Ontario Court of Appeal allowed the appeal and held that the debtor was entitled to damages to be assessed by a Master.

Creditors and Debtors - Topic 1065

Debtors' rights - Before payment - Reasonable notice of requirement to pay - The Ontario Court of Appeal stated that a debtor is entitled to reasonable notice of a requirement to pay a debt, notwithstanding that the debt is payable "on demand" (see paragraph 2).

Creditors and Debtors - Topic 1065

Debtors' rights - Before payment - Reasonable notice of requirement to pay - A company owed a bank $600,000 payable "on demand" - The bank demanded payment of the loan after giving the debtor notice of less than one hour - The Ontario Court of Appeal held that the debtor was entitled to reasonable notice and that notice of less than one hour was not reasonable notwithstanding the failure of the debtor to request time to pay when the demand was made - The court referred to circumstances in which notice of less than one hour might be reasonable (see paragraph 24).

Cases Noticed:

Ronald Elwyn Lister Limited, Ronald E. Lister and Joan C. Lister v. Dunlop Canada Limited, [1982] S.C.R. 726; 42 N.R. 181; 135 D.L.R.(3d) 1, folld. [paras. 2 & 27].

Counsel:

Douglas Stewart, Q.C., for the appellant, Mister Broadloom Corp. Ltd.;

P.S.A. Lamek, Q.C., and Hilda M. McKinlay, for the respondent, Bank of Montreal.

This appeal was heard by Lacourciere, Blair and Tarnopolsky, JJ.A., of the Ontario Court of Appeal on October 27 and 28, 1983.

The judgment of the Court of Appeal was delivered on December 12, 1983, and the following opinions were filed:

Blair, J.A. - see paragraphs 1 to 26;

Lacourciere, J.A. - see paragraph 27 .

Tarnopolsky, J.A., concurred with Blair, J.A.