The plaintiff bank brought a motion for summary judgment against a corporate director under a personal guarantee limited to $125,000 plus interest securing the debts of the corporation.
The defendant acknowledged the signature on the guarantee but argued the bank failed to discharge its duty to draw attention to onerous provisions, relying on Tilden Rent-A-Car Co. v. Clendenning.
The court held the guarantee was clear, continuing, and applied to all accounts, and found the defendant knowingly executed it as the directing mind of the corporation to obtain financing.
The court rejected the argument that the bank had a positive duty to ensure understanding of the guarantee's terms.
Summary judgment was granted in favour of the bank for the outstanding balance plus interest.
