A lender brought a motion for summary judgment seeking repayment of a loan exceeding $1.6 million and dismissal of the borrower’s counterclaim.
The borrower, a First Nation, alleged that the lender negligently advanced loans and acted in an advisory capacity when financing land purchases intended for a reserve, creating a fiduciary or special relationship beyond a typical debtor‑creditor relationship.
The borrower asserted that the lender’s conduct contributed to financial losses and raised an equitable set‑off defence grounded in alleged breaches of duty.
The court held that the evidentiary record raised genuine issues regarding whether the lender assumed an advisory role and whether exceptional circumstances created a fiduciary relationship.
Because those issues required a detailed factual assessment and credibility determinations, summary judgment was inappropriate.