Legal Blog

Guarantee-Improvident Sale

Bank of Nova Scotia v. Scholaert 2017 Ont SCJ

Bank sued guarantor of the debtor. It had sold assets of the debtor, but ultimately realised nothing from that sale because CRA had a claim in priority. Guarantor claimed that the bank made in an improvident sale of the debtor’s assets. The judge noted that the bank sold the assets for more than the asset valuation of an independent appraiser and that the guarantee gave the bank wide latitude on the sale of assets and stipulated that the bank only needed to act reasonably. The judge granted judgment against the guarantor.

Written by Jonathan Speigel Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.