A secured creditor applied for judgment against individual guarantors following the borrower corporation’s receivership.
The respondents had executed personal guarantees securing corporate indebtedness totaling $140,000.
Each guarantor attempted to shift responsibility to the other and argued the creditor should first exhaust recovery against the corporation.
The court held the guarantees expressly permitted the creditor to proceed directly against the guarantors without exhausting recourse against the principal debtor.
Finding no tenable defence, the court granted judgment against both guarantors for the guaranteed amounts plus interest and costs.
