This case concerned a loan secured by mortgages and a guarantee which went into default. The borrower argued that the loan provision, which permitted interest rate changes by the lender without the borrower’s consent was void. The lender sought summary judgment. The lender argued that a term could be implied that interest rates were to be fair and reasonable. The lower court found that it could not find for the lender because no evidence was put before it to show that the interest rate changes actually made were in fact fair and reasonable. The lower court decided that it was not an appropriate case for summary judgment.
The Appeal Court agreed.