The appellants appealed a trial judgment finding them liable for fraud, awarding damages and punitive damages, and granting an oppression remedy.
The appellants operated a petroleum supply business that became insolvent.
They continued to order gasoline from the respondent without intending to pay, using the proceeds to pay themselves and their lawyers.
The Court of Appeal upheld the finding of fraud and the compensatory damages of $539,658.41 for gasoline delivered after January 9, 1997.
However, the Court struck the oppression declaration, the $300,000 punitive damages award, and the order subordinating the appellants' secured claims, allowing the appeal in part.