TD Bank wins loan recovery action and defeats multimillion-dollar counterclaim
Date
August 12, 2026Office Involved
On August 12, 2026, TD Bank (“TD”) obtained judgment in its loan recovery action and the dismissal of a multimillion-dollar counterclaim in TD Bank v. 1633092 Ontario Ltd., 2026 ONSC 4620, before the Ontario Superior Court of Justice.
The dispute arose from financing provided to rebuild an Ottawa-area restaurant following a fire. TD sought repayment of loans advanced to the business and its owners. The owners counterclaimed, alleging that TD’s failure to advance the full loan amount caused their business failures and personal financial losses.
Following an 11-day trial, Justice Robert Smith accepted TD’s position that the funding shortfall was not the effective cause of the claimed losses and that the restaurant would have failed even if the full loan had been advanced. The Court rejected allegations of dishonest conduct, dismissed the counterclaim in its entirety and enforced TD’s lending, guarantee and security rights.
McCarthy Tétrault LLP advised TD with a team led by Adam Goldenberg that included Foti Vito, Virginia Fletcher, Erin Chesney, and Shane D'Souza (Litigation).
