Kough

MEMORANDUM OF OPINION

This case involves a foreign corporation, plaintiff Bank of Montreal (“Bank”), and a California resident, defendant Jack Rough also known as John Keller Rough (“Rough”). Cross-motions for summary judgment are presently before the Court and there appearing no material facts in issue, the matter is ripe for determination.

The case arose out of a breach of contract of guarantee. Rough is on the Board of Directors of Arvee Cedar Mills, Ltd., located in British Columbia, Canada. The parties admit that on August 8,1973, the Bank entered into guarantee agreements with Rough and with one Merlin William Thompson, pursuant to which each agreed to guarantee the payment of all present and future debts of Arvee Cedar Mills, Ltd., to the extent of $718,000 plus interest from date of demand for payment. The guarantees were given by Rough and Thompson in return for the Bank’s agreement to do business with Arvee Cedar Mills, Ltd.

The Bank subsequently brought an action on August 14, 1975, for breach of contract in the Supreme Court of British Columbia. The Bank alleged that there was due and owing $769,000 from Arvee Cedar Mills, Ltd., and that defendant Rough, as well as…