The plaintiffs, principals of a trucking business, sued HSBC Bank Canada seeking declarations that their personal guarantees were void.
HSBC counterclaimed against the plaintiffs and others for fraudulent and negligent misrepresentation, conspiracy, and conversion, alleging they provided false audited financial statements, forged signatures, and fictitious accounts receivable to induce the bank to lend over $9 million.
The court dismissed the plaintiffs' claim and granted judgment in favour of HSBC on its counterclaims, finding the defendants liable for over $10 million in damages for misrepresentation, nearly $4 million for conversion, and $100,000 in punitive damages.
