The plaintiff, Willowbrook Nurseries Inc., sued the Royal Bank of Canada for breach of contract and bad faith, alleging the bank failed to provide reasonable notice of changes to its lending arrangements and restricted financing.
Willowbrook claimed an overarching agreement for continued credit, including temporary accommodation requests (TARs), which RBC abruptly ceased.
The court found that the relationship was contractual, not fiduciary, and while RBC's actions might have been financially unwise, they were not in bad faith.
The bank exercised its contractual entitlements and provided reasonable notice for Willowbrook to seek alternative financing.
The plaintiff's claims for specific, goodwill, productivity, general, and punitive damages were dismissed.