Bank security and defense of subrogation

The Quebec Court of Appeal rules that while the Civil Code of Quebec does not permit a creditor to require from a surety to
waive in advance its right to the defence of subrogation, it does not prevent a surety from doing so after the liability has arisen under the instrument providing for the suretyship or guaranty. The Court also confirms that a renunciation to the defence of subrogation can be partial. This decision will likely impact on insurance law as well. (National Bank of Canada v. Lemay, 2008 QCCA 1). Dubé Légal inc., Montreal Litigation Lawyers.