Case information
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31556
Michael McCartney v. National Bank of Canada
(Ontario) (Civil) (By Leave)
Docket
Judgments on applications for leave to appeal are rendered by the Court, but are not necessarily unanimous.
| Date | Proceeding | Filed By (if applicable) |
|---|---|---|
| 2007-02-23 | Close file on Leave | |
| 2007-02-23 | Copy of formal judgment sent to Registrar of the Court of Appeal and all parties | |
| 2007-02-23 | Judgment on leave sent to the parties | |
| 2007-02-22 |
Judgment of the Court on the application for leave to appeal, The application for leave to appeal from the judgment of the Court of Appeal for Ontario, Number C43622, dated May 23, 2006, is dismissed with costs to the respondent. Dismissed, with costs |
|
| 2006-12-04 | All materials on application for leave submitted to the Judges, Ba LeB F | |
| 2006-09-26 | Order on motion to substitutional service | |
| 2006-09-26 |
Decision on motion for substitutional service, of this motion, the response and book of authorities upon the applicant, Reg Granted |
|
| 2006-09-26 | Submission of motion for substitutional service, Reg | |
| 2006-09-25 | Response to motion for substitutional service, Completed on: 2006-09-25 | Michael McCartney |
| 2006-09-01 | Motion for substitutional service, (book form), Completed on: 2006-09-01 | National Bank of Canada |
| 2006-09-01 | Book of authorities, Sent to the applicant by regular mail and by email along with Motion for substitutional service | National Bank of Canada |
| 2006-09-01 | Respondent's response on the application for leave to appeal, Sent to the applicant by regular mail and by email along with Motion for substitutional service, Completed on: 2006-09-01 | National Bank of Canada |
| 2006-08-08 | Letter acknowledging receipt of an incomplete application for leave to appeal | |
| 2006-08-03 | Application for leave to appeal, Service and Trial Court Order missing - Trial Court Order rec'd by fax on Aug. 14/06; Service rec'd by fax Aug.15/06, Completed on: 2006-08-16 | Michael McCartney |
Parties
Please note that in the case of closed files, the “Status” column reflects the status of the parties at the time of the proceedings. For more information about the proceedings and about the dates when the file was open, please consult the docket of the case in question.
Main parties
| Name | Role | Status |
|---|---|---|
| McCartney, Michael | Applicant | Active |
v.
| Name | Role | Status |
|---|---|---|
| National Bank of Canada | Respondent | Active |
Counsel
Party: McCartney, Michael
This party is not represented by counsel.
Party: National Bank of Canada
Counsel
Freya M. Painting
Suite 3200, Canadian Pacific Tower, 100 Wellington St. West
P.O. Box 329, Toronto Dominium Centre
Toronto, Ontario
M5K 1K7
Telephone: (416) 304-0148
FAX: (416) 304-1313
Email: dpalter@tgf.ca
Summary
Keywords
None.
Summary
Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.
Common Law - Contracts - Loans - Guarantee of loan - Whether a court can enforce a guarantee of a loan where the creditor allows a material violation of the terms of the loan without the consent of the guarantor - Whether a bank has a duty of care to communicate material violations of loan agreements to minor creditors/guarantors - Whether the duty of care explicit in the Bank Act and in common law applies to bank employees in a situation where they have foreseeable knowledge of harm to clients or creditors - Whether a bank's practice of ignoring loan conditions, failing to communicate with minor creditors/guarantors and moving to collect on guarantees ought to be curtailed by the courts - Nature of a bank's duty of care to avoid oppression of minor creditors - Whether minor guarantors should be treated fairly and with the same care as main guarantors.
The applicant purchased twenty percent of the shares of Reed Energy Corporation based on a financial proposal prepared by Julian Reed. The proposal contained misrepresentations. Julian Reed owned sixty percent of the shares of Reed Energy Corporation and his son owned the remaining twenty percent. National Bank of Canada loaned $1,050,000 to High Falls Energy Corporation which was wholly owned by Reed Energy Corporation. The applicant, Julian Reed and Reed Energy Corporation signed guarantees of the loan. High Falls Energy Corporation was unable to meet its obligations and National Bank of Canada issued demand letters. The applicant and Julian Reed signed a Forbearance Agreement. High Falls Energy Corporation failed to make the payments required under the Forbearance Agreement. National Bank of Canada commenced an action based on the guarantees. The applicant brought a cross-claim against Julian Reed based on the misrepresentations in the proposal.
Lower court rulings
Ontario Superior Court of Justice
01-CV-206394CM
Judgments for National Bank of Canada on the guarantees ($250,000 against the applicant, $1,000,000 against Julian Reed, $1,000,000 against Reed Energy Corporation). Applicant's cross-claim against Julian Reed allowed in part, in the amount of $80,000.
Court of Appeal for Ontario
C43622
Applicant's appeal dismissed
Filed documents
The memorandums of argument on an application for leave to appeal will be posted here 30 days after leave to appeal has been granted unless they contain personal information, information that is subject to a publication ban, or any other information that is not part of the public record. You may also obtain copies of the memorandum by filling out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613-996-8666 or at 1-844-365-9662.
If you have questions about a memorandum of argument or want to use a memorandum of argument, please contact the author of the memorandum of argument directly. Their name appears at the end of the memorandum of argument. The contact information for counsel is found in the “Counsel” tab of this page.
Downloadable PDFs
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Related links
The factums of the appellant, the respondent and the intervener will be posted here at least 2 weeks before the hearing unless they contain personal information, information that is subject to a publication ban, or any other information that is not part of the public record. You may also obtain copies of factums by filling out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613-996-8666 or at 1-844-365-9662.
If you have questions about a factum or want permission to use a factum, please contact the author of the factum directly. Their contact information appears on the first page of each factum.
Downloadable PDFs
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Related links
The condensed books of the appellant, the respondent and the intervener will be posted here upon receipt of the electronic version, 2 days prior to the scheduled appeal hearing. You may also obtain copies of condensed books by filling out the Request for Court records form or by contacting the Court’s Records Centre either by email at records-dossiers@scc-csc.ca or by telephone at 613-996-8666 or at 1-844-365-9662.
If you have questions about a condensed book or want permission to use a condensed book, please contact the author of the condensed book directly. Their contact information appears on the first page of each condensed book.
Downloadable PDFs
Not available