Legal Blog

They Made Me

Occasionally a case is reported and you have to wonder why it was ever litigated. One such case is Royal Bank of Canada v. Jaffer, a 2011 decision of the Ontario Superior Court of Justice.

 Did Not Want To

 The bank claimed against a debtor for $47,000 due on a Visa card. The debtor had signed an application indicating that he was jointly and severally liable, along with his corporation, to the bank for debts due under the card.

 The debtor argued that he really had not wanted the money. It was all the fault of the bank’s aggressive salesman who “forced the loan down his throat” and told the debtor that there would be no personal liability.

 Decision

 The debtor, who had a post-secondary education and spoke and wrote English well, admitted that he had not read the cardholder agreement. The judge easily concluded that the debtor could not claim that he did not fully understand what he signed because he could not demonstrate an absence of carelessness or negligence. He was negligent.

The judge held the debtor liable. The bank attempted to get partial indemnity costs of $19,000. The judge ordered costs of $10,000 because he could not understand why 72 hours of legal time was necessary for a four-hour trial.

 Why did this matter get to trial? The debtor represented himself.