The plaintiffs hired the defendants for cottage interior finishing and landscaping, paying a $542,400 deposit specifically to pre-purchase and store armour stone.
The defendants failed to purchase the stone and concealed this fact from the plaintiffs.
Upon discovering the truth, the plaintiffs terminated the contract and sued for the return of the unearned funds.
The court found the defendants liable for fundamental breach of contract, breach of a Quistclose trust, and breach of the duty of honest performance.
The individual defendant was held personally liable for knowingly participating in the breach of trust, and the plaintiffs were awarded $474,819.97 in damages.