The appellant creditor appealed a decision dismissing its motion for summary judgment against the respondent guarantors for a mortgage shortfall.
The motion judge had excluded the appellant's affidavit evidence as hearsay and found genuine issues for trial regarding alleged oral representations by the appellant's employee that the guarantee would not be enforced.
The Divisional Court allowed the appeal, holding that the motion judge erred in law by excluding the affidavits and failing to apply the parole evidence rule.
Given the 'entire agreement' clause in the guarantee, the alleged oral representations raised no genuine issue for trial.
Summary judgment was granted against the borrowers and guarantors for the deficiency.