Key Issues:

• RBC sought summary judgment for breach of contractual obligations under a Credit Agreement and Personal Guarantee, as well as defaults under a subsequent Forbearance Agreement.

Key Facts:

• The defendants:

  • Signed a Credit Agreement (corporate defendant) and a Personal Guarantee (personal defendant).
  • Defaulted on obligations.
  • Entered into a Forbearance Agreement, affirming the enforceability of prior agreements, with independent legal advice.
  • Subsequently defaulted on the Forbearance Agreement as well.

• Defendants filed a Statement of Defence but did not present evidence or attend the summary judgment motion.

Court’s Analysis:

1. No Genuine Issue for Trial:

   • Defendants failed to provide evidence supporting their defences.
   • Pleadings alone are insufficient in a summary judgment motion (per KVM Investments Ltd. v. Isabella, 2022 ONSC 4125).

2. Debt and Interest:

   • Amount owing: $394,121.61 as of September 5, 2023, plus accrued interest and enforcement costs.
   • Pre- and post-judgment interest rates:
     • Corporate defendant: RBC Prime Rate (RBP) + 1.75%.
     • Personal defendant: RBP + 1.75% (until September 13, 2023); RBP + 5% (from September 15, 2023).

3. Costs:

   • Plaintiff entitled to full indemnity costs of $16,868, found to be reasonable and proportionate.

Outcome:

• Judgment granted in favor of RBC:
  • Principal amount of $394,121.61 plus interest, costs ($16,868), and legal expenses.