Royal Bank of Canada v. 1643937 Ontario Inc.

Royal Bank of Canada v. 1643937 Ontario Inc.

The appeal was allowed in part: the Court set aside the motion judge's $84,490.38 costs order as against the individual appellants, remitted the narrow issue of the scope of their liability under their personal guarantees to trial in light of alleged misrepresentations, otherwise dismissed the appeal, awarded appellants $15,000 costs of the appeal, and reserved costs of the summary judgment motions and the action to-date to the trial judge.

Citation
2021 ONCA 178
Parties
Plaintiff (respondent): Royal Bank of Canada; Defendant (appellant): 1643937 Ontario Inc.; Defendant (appellant): Lorraine MacDonald; Defendant (appellant): Shawn McHale; Defendant (appellant): Patrick McHale; Defendant (appellant): Beverly McHale
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
22 March 2021
Procedural Posture
Collection / Appeal (decision Remitting Narrow Issue to Trial; Costs Reserved)
Outcome
Appeal allowed in part; motion judge's costs order of $84,490.38 set aside as against appellants; narrow issue remitted for trial; remainder of appeal dismissed; costs on motions and action to-date reserved to trial judge; appellants awarded $15,000 costs of appeal.
Legal Topics
Summary Judgment, Personal Guarantees, Misrepresentation, Costs, Remittal, Motions, Counterclaims
Source Language
English
Civil Collection Costs Appeal Summary Judgment Personal Guarantees Misrepresentation Remittal +2 more

Case Brief

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Parties

Royal Bank of Canada

Plaintiff (respondent)

1643937 Ontario Inc.

Defendant (appellant)

Lorraine MacDonald

Defendant (appellant)

Shawn McHale

Defendant (appellant)

Patrick McHale

Defendant (appellant)

Beverly McHale

Defendant (appellant)

Procedural Posture

Collection / Appeal (decision Remitting Narrow Issue to Trial; Costs Reserved)

Legal Issues

  1. 1 Whether the motion costs awards should stand and in what amount
  2. 2 Whether appellants' liability under their personal guarantees is limited by alleged misrepresentations by the respondent
  3. 3 Whether the motion judge's costs order should be set aside as to the appellants

Ratio Decidendi

The appeal was allowed in part: the Court set aside the motion judge's $84,490.38 costs order as against the individual appellants, remitted the narrow issue of the scope of their liability under their personal guarantees to trial in light of alleged misrepresentations, otherwise dismissed the appeal, awarded appellants $15,000 costs of the appeal, and reserved costs of the summary judgment motions and the action to-date to the trial judge.

Court Disposition

Appeal allowed in part; motion judge's costs order of $84,490.38 set aside as against appellants; narrow issue remitted for trial; remainder of appeal dismissed; costs on motions and action to-date reserved to trial judge; appellants awarded $15,000 costs of appeal.

Orders

  • Appeal allowed in part and appellants awarded $15,000 costs of the appeal
  • Set aside the motion judge's costs order of $84,490.38 as against the appellants (order remains against 1643937 Ontario Inc.)