Bois P. Wilson

The appellants appealed a summary judgment decision finding that two related corporations were privies, and that issue estoppel prevented the second corporation from re-litigating issues decided in a default judgment against the first.

The Court of Appeal dismissed the appeal, finding no genuine issue for trial.

The companies shared the same controlling mind, business, location, and key employees.

The controlling mind knew the respondent had initially sued the wrong corporate entity but failed to disclose it, and the second corporation was bound by the first's deliberate choice not to defend the action.

The appellants appealed an order refusing to set aside a default judgment.

The Court of Appeal dismissed the appeal, finding the motion judge correctly concluded that the appellants made a deliberate choice not to file a statement of defence.

Applying established jurisprudence, the court held that an intentional refusal to defend stands as a permanent bar to intervention.

The court also declined to interfere with the punitive damages award, noting the appellants provided no authority to support the contention that it was excessive.