The appellant brought an action for foreclosure on a mortgage given by the respondents as security for a guarantee of their son's company's debts.
The trial judge granted judgment for the mortgage amount but allowed the respondents' counterclaim for breach of fiduciary duty based on alleged collateral assurances, awarding a set-off.
The Court of Appeal allowed the appeal, holding that while the trial judge correctly found the guarantee valid and collateral assurances inadmissible to contradict it, he erred in finding those same assurances created a fiduciary relationship.
The counterclaim was dismissed and costs awarded to the appellant.
