Back to all publications
Dec 5, 2019

Ontario Court of Appeal Affirms Equipment Lessor’s Right to Sue on Guarantee Despite Assignment of Lease Rights

By Jill P. Fraser

On December 3, 2019, the Ontario Court of Appeal (the “OCA”) released its decision in 1951584 Ontario Inc. (Maxium Financial Services Inc.) v. Altavision Plus Inc. (“Altavision”),1 upholding a summary judgment in respect of personal guarantees of equipment lease obligations.

One of the grounds of appeal asserted by the appellant guarantors was that the equipment lessor (the “Lessor”) lacked standing to enforce the guarantees because it had assigned its rights under the leases pursuant to a master purchasing and service agreement (the “MPSA”). In rejecting this argument, the OCA found that the Lessor had only assigned the income stream from the leases, but not its right to enforce those receivables. Even if the Lessor had assigned the right to enforce such receivables, it would still be bound under the MPSA to enforce as agent. The OCA reached the same conclusion with regard to the Lessor’s standing to enforce the guarantees.

The Altavision decision affirms the standard industry model for bulk lease assignments and thus will be of comfort to both lessors and funders.

The Financial Services Group at Aird & Berlis regularly advises equipment lessors and funders under master lease purchase agreements, as well as creditors in guarantee enforcement actions. Details are available at our Financial Services webpage.


1 1951584 Ontario Inc. (Maxium Financial Services Inc.) v. Altavision Plus Inc., 2019 ONCA 943 (ONCA).

Related Publications

Publications Article
Court Enforces Exculpatory Clause Dismissing Condominium Class Action By Steve J. Tenai, Brian Chung and Martin Henderson Jul 03, 2020 Over the last several years, we have seen the cancellation of several significant condominium dev... Over the last several years, we have seen the cancellation of several significant condominium developments. In response, for projects going to market after January 1, 2020, Tarion now requires that agreements of purchase and sale include an information sheet at the front of the purchase ...
Publications Article
Using the ATM to Avoid the Teller – The CSA Approves Amendments to Streamline ATM Offerings By Liam Tracey-Raymont and Portia Biswas Jul 02, 2020 The Canadian Securities Administrators have approved amendments to National Instrument 44-102 – S... The Canadian Securities Administrators have approved amendments to National Instrument 44-102 – Shelf Distributions (“NI 44-102”) and Companion Policy 44-102CP Shelf Distributions relating to At-the-Market Distributions that eliminate the requirement for reporting i...
Publications Article
A Stark Warning to Candidates for Municipal Office When Filing Their Campaign Election Statements By John Mascarin and Matthew Patterson Jul 02, 2020 The Ontario Court of Appeal made headlines recently when it released its decision in Karygiannis ... The Ontario Court of Appeal made headlines recently when it released its decision in Karygiannis v. Toronto (City), 2020 ONCA 411, removing Toronto City Councillor Jim Karygiannis from office for the second time this term.