CAUTION: We have been advised that fraudulent emails with a modified domain name have been sent by a source purporting to be from Aird & Berlis LLP. These communications are not legitimate and are not from Aird & Berlis LLP. Disregard any such emails and do not engage with the sender or the email in any way. Please report the attempted fraud by contacting the Canadian Anti-Fraud Centre and by emailing Aird & Berlis LLP at help@airdberlis.com.

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
How One Lawyer Helps Young Litigators Through Modern Training By Aaron Baer Jan 15, 2021 Law students and young lawyers often find themselves in the world of unknown unknowns. And that i... Law students and young lawyers often find themselves in the world of unknown unknowns. And that is a dangerous and very stressful place to reside.
Publications Article
New COVID-19 Measures Introduced by Province and City of Toronto: What a Stay-at-Home Order and the New Reporting Obligations Mean for Employers By Lorenzo Lisi, Daria (Dasha) Peregoudova and Stacey Blydorp Jan 14, 2021 The Ontario government, following a review of current COVID-19 modelling trends, announced on Jan... The Ontario government, following a review of current COVID-19 modelling trends, announced on January 12, 2021, a stay-at-home order that took effect on Thursday, January 14, 2021 at 12:01a.m.
Publications Article
Inclusionary Zoning – What Does It Mean for My Development Project? By Eileen P. K. Costello and John Pappas Jan 13, 2021 The City of Toronto has released details of its proposed inclusionary zoning framework. While fin... The City of Toronto has released details of its proposed inclusionary zoning framework. While final approval by Council is still many months away, the details of the report paint a clearer picture for the development community in Toronto of what is to come.