Background: The Royal Bank of Canada (the “Bank”) sought judgment against Carol Smith for a debt on a Royal Bank Visa credit card amounting to $34,111.34 as of April 24, 2020, with interest totaling $51,764.09. The case was presided over by Madam Justice Lyster in the Supreme Court of British Columbia.

Legal Arguments/Issues: The Bank argued that Carol Smith was liable as a co-applicant for the credit card debt, citing the Cardholder’s Agreement. Carol Smith contended she never applied for or agreed to the terms of the credit card, believing she was merely an authorized user. Additionally, Smith argued that if she were a co-applicant, her liability should be limited to $1,000 due to the lack of express consent for credit limit increases.

Analysis: The court found that the Bank failed to prove Carol Smith was a co-applicant, as the application was not produced. The evidence suggested she was an authorized user, not liable for the debt. The court dismissed the Bank’s action, ruling in favor of Carol Smith.

Costs/Damages Awarded: Carol Smith was awarded costs at Scale B. The Bank's total claim of $51,764.09 was not upheld.