Plaintiff
Defendant
Background:
Summit Leasing Corporation loaned $250,000 USD to Donald Rutledge under a 2021 agreement. The loan was disbursed in two tranches: $150,000 upon signing a promissory note and $100,000 upon issuance of Aquagold International Inc. shares. Leslie Rutledge, Donald’s spouse, managed the loan funds in her account at his direction and provided collateral through a security agreement pledging certain assets. Despite a repayment deadline of December 31, 2021, the loan was never repaid, prompting Summit to pursue legal action.
Legal Issues:
Summit Leasing applied for orders under the Supreme Court Civil Rules to compel document production from Donald Rutledge and to examine Leslie Rutledge to aid in enforcing the debt. Summit argued that access to Donald's financial records was necessary to assess his ability to satisfy the judgment, alleging that Donald was withholding information. The defendants contended that the document requests were overly broad, irrelevant, and included records beyond Donald’s control.
Court Findings and Orders:
The court required Donald to produce specific financial documents related to loan enforcement, narrowing the scope of Summit’s initial request. Leslie Rutledge was ordered to attend an examination focused on her knowledge of Donald’s finances, though document production was deferred until Donald complied.
Costs:
Each party bore its own costs due to mixed success in the application.
Final Award:
The court upheld Summit’s judgment, requiring Donald Rutledge to pay $250,000 USD (approximately $343,000 CAD) plus 30% annual interest compounded monthly, and recovery costs, with an outstanding debt nearing $500,000 USD.
Court
Supreme Court of British ColumbiaCase Number
S235189Practice Area
Corporate & commercial lawAmount
$ 343,000Winner
PlaintiffTrial Start Date
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