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Guarantor not discharged by sale of principal debtor's shares; summary judgment granted to mortgagee.
The appellant mortgagee appealed the dismissal of its action against a guarantor on summary judgment.
The motions judge had found that the guarantor was discharged due to a change in the principal contract.
The Court of Appeal allowed the appeal, holding that the sale of shares of the principal debtor corporation to third parties did not vary the contract between the principal debtor and the mortgagee, nor did it breach the guarantee contract.
The appellant was granted summary judgment on the guarantee in the amount of $869,091.18.