The Estate of Karen Rail brought a summary judgment motion to recover amounts owing under two promissory notes issued by the defendant corporations.
The first note, dated January 12, 2012, was for $100,000 plus interest issued by 284 Ontario Limited.
The second note, dated December 8, 2017, was for $100,000 plus interest issued by Interra Management Group Limited.
The Estate also sought to pierce the corporate veil to hold Patrick Cronin, the sole director and shareholder of both corporations, personally liable.
The court granted summary judgment against the corporate defendants on both promissory notes but dismissed the action against Cronin personally.
The court found that the July 21, 2020 text message from Cronin constituted a valid acknowledgment of the debts under the Limitations Act, 2002, thereby resetting the limitation period.
The court declined to pierce the corporate veil, finding no evidence of fraudulent or improper use of the corporations.
