On appeal from a trial judgment dismissing the appellants' action for breach of contract and repudiation.
The appellants, who operated methadone treatment clinics, hired the respondent physician under a contract requiring her to remit 45% of OHIP billings and containing a non-competition clause.
Following the dissolution of the appellants' joint venture with another clinic operator, the respondent continued working at the jointly-operated clinics.
The trial judge found the contract frustrated by intervening events and that the non-competition provision was not breached.
The appellants appealed, arguing errors in the frustration analysis and interpretation of the non-competition clause.
The Court of Appeal upheld the trial judge's findings on frustration and contractual interpretation but allowed the appeal in part, awarding the appellants $8,194.59 for underpayment during the period prior to the alleged repudiation.