Our client, a partner in a western Canada auto alarm distribution company, was sued by its main supplier for non-payment. The supplier sued both the company and our client personally, relying on a personal liability clause in the standard form written agreement. The auto alarm company was going out of business and couldn’t pay its debt. Concerned about the legal cost, our client went to the trial without a lawyer. The trial judge turned a deaf ear to his pleas that no personal obligation was intended. With the words, “You signed it. You have to pay for it.” the judge found him personally liable for $100,000, including legal costs. Facing financial ruin, the businessman turned to us to appeal the judgment. Our written analysis of the law and our oral advocacy persuaded the Ontario Court of Appeal to overturn the judgment against our client. He avoided payment of $100,000 even recovered some of his legal fees.
