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Bank granted judgment on defaulted loans; defendants' multimillion-dollar counterclaim for breach of commercial loan dismissed.
The bank sued the defendants for default on a commercial loan, a home equity line of credit, and various credit cards.
The defendants counterclaimed for $8.8 million, alleging the bank's failure to fully advance a $350,000 small business loan caused the failure of their restaurant businesses.
The court found that while the bank breached the loan agreement, the breach was not the effective cause of the business failures.
The business failures were caused by a prior fire, massive existing debts, and a failed expansion restaurant that rendered a $500,000 internal loan uncollectible.
The court dismissed the counterclaim, preferred the bank's expert valuation, found no deceit or bad faith by the bank, and granted judgment to the bank for the outstanding loan amounts.
Appeal dismissed for lack of jurisdiction under the Succession Law Reform Act.
In an estate appeal, the court held that the judgment under appeal was, on its face, made under the Succession Law Reform Act.
Because s. 76 grants exclusive appellate jurisdiction to the Divisional Court for appeals under that Act, the Court of Appeal lacked jurisdiction.
The appeal was dismissed on that basis.
The court also ordered costs payable to the respondent by the estate in an agreed all-inclusive amount.
