Howard W. Reininger

The appellant's husband gave a mortgage to the respondent to secure a loan, which the appellant guaranteed.

When the mortgage matured, the husband forged the appellant's signature on a renewal agreement without the respondent's knowledge.

After the husband defaulted, the respondent sold the property under power of sale and sued the appellant for the deficiency.

The Court of Appeal dismissed the appellant's appeal, holding that the clear and unambiguous language of the original guarantee bound her until the moneys originally advanced were fully paid, regardless of the forged renewal.

The moving party brought a motion to quash an appeal.

The responding party failed to appear despite being advised of the hearing date.

The Court of Appeal proceeded with the motion and held that the appeal was barred by section 7(6) of the Arbitration Act.

The motion was granted, the appeal was quashed, and costs of $2,000 were awarded to the moving party.

The appellants, who were non-parties to the bankruptcy proceedings, appealed a trial judge's order awarding costs against them.

The trial judge had dismissed the bankruptcy petitions against the respondents, finding they were brought for an improper collateral purpose and constituted an abuse of process orchestrated by the appellants.

The Court of Appeal upheld the costs order, noting that section 197(1) of the Bankruptcy and Insolvency Act gives the court broad discretion regarding costs, and that special policy considerations justify harsher costs consequences against persons who misuse the bankruptcy court for improper collateral purposes.