R. Brown

The plaintiff tire distributor sued the corporate defendant and its sole proprietor for unpaid invoices totalling $659,908.87, relying on a personal guarantee allegedly signed by the proprietor.

The action against the corporate defendant was stayed due to bankruptcy.

The proprietor admitted the corporate debt but denied knowingly signing a personal guarantee, arguing the document was presented merely as a credit application update.

The court found that while the proprietor did sign the document, the plaintiff had a positive obligation to bring the guarantee clause to his attention due to their special, long-standing business relationship.

Because the plaintiff failed to do so, the guarantee was obtained by misrepresentation and was unenforceable.

The action against the personal defendant was dismissed.

The applicant appealed an arbitrator's decision in a loss transfer dispute finding its insured 100% at fault for a motor vehicle accident under Rule 14(2) of the Fault Determination Rules.

The arbitrator had relied on the Highway Traffic Act to interpret the phrase 'fails to obey a stop sign'.

The Superior Court determined the standard of review was reasonableness and found the arbitrator's interpretation and application of the rules, which excluded tort considerations like the other driver's speed, were reasonable.

The appeal was dismissed.