The appellant appealed a Small Claims Court judgment awarding the respondent damages for unpaid invoices based on personal guarantees.
The appellant argued the respondent improperly split its claims to stay within the Small Claims Court monetary limit and that the guarantees were unenforceable because no prior written demand was made.
The Divisional Court held that the claims were not improperly split as they were based on separate guarantees for different corporate entities.
However, the court found that a formal demand for payment was a condition precedent to bringing an action on a collateral debt (guarantee).
Since no demand was made, the actions were dismissed.