Case Overview:

• Court: New Brunswick Court of King’s Bench
• Parties: Business Development Bank of Canada (Plaintiff) vs. 696590 N.B. Inc. and individual guarantors: Terrance Gordon Howe, Carolyn Gertrude Howe, and Stuart Andrew Howe (Defendants).
• Core Issue: The plaintiff sought summary judgment for unpaid loans guaranteed by the defendants.

Key Facts:

1. Loans totaling approximately $50,000 were issued by the plaintiff to the defendants between 2017 and 2020. Personal guarantees were provided by Terrance and Carolyn Howe.
2. In 2021, ownership of 696590 N.B. Inc. was transferred from Terrance and Carolyn Howe to their son Stuart Howe. They claimed the guarantees would be replaced with Stuart’s, but no formal release was documented.
3. The defendants defaulted on payments in 2023, leading to legal action.

Court Findings:

• Personal Guarantees Remain Binding: The court determined that no express or implied agreement existed to release Terrance and Carolyn Howe from their guarantees. The agreements explicitly required written consent for such a release, which was not provided.
• No Estoppel Defense: Terrance and Carolyn failed to establish promissory estoppel as they relied on their interpretation of discussions with the plaintiff, not clear assurances.
• Liability Apportioned: Terrance Howe was held liable for $23,520; Carolyn Howe, $13,897.85. These judgments were joint and several with prior judgments against 696590 N.B. Inc. and Stuart Howe.

Costs and Disposition:

• Total costs awarded were $1,500 plus disbursements, in favor of the plaintiff.
• The judgment clarified the respective liability limits for each defendant.