Loan Default: Cellular Transport Inc. defaulted on a $60,000 line of credit obtained from The Toronto-Dominion Bank in 2004.
Guarantor: Helen Marie MacNeill, former spouse of the principal of Cellular Transport Inc., signed a guarantee for the loan in 2004.
Separation Agreement: In 2017, MacNeill transferred her shares in the company to her ex-spouse and resigned, with an agreement that her ex-spouse would indemnify her from liabilities associated with the company.
Legal Issues:
Summary Judgment: The bank sought summary judgment against MacNeill as the guarantor for $54,908.06.
Defence Claims: MacNeill claimed she did not recall signing the guarantee and asserted undue influence by her ex-spouse. She also argued the bank should have advised her when the company was not profitable.
Court's Decision:
Summary Judgment Granted: The court granted summary judgment in favor of the bank for $54,908.06, plus interest, on the grounds that:
There were no material facts in dispute.
MacNeill did not deny her signature on the guarantee.
She was a shareholder and officer at the time of signing, benefiting directly from the loan.
Claims of undue influence and non est factum (not understanding the nature of the document) were unsupported by sufficient evidence.
Outcome:
Judgment: MacNeill was ordered to pay $54,908.06, plus interest. The court will consider costs if not resolved between the parties.
