Christopher Reed

The appellants, minority shareholders of an insolvent corporation, appealed a motion judge's order granting partial summary judgment dismissing their claims for damages for oppression, breach of contract, and tort.

The motion judge found no evidence that the respondents' alleged wrongful conduct caused the appellants' damages.

The Divisional Court upheld the dismissal of the damages claims, confirming that causation and compensable injury are required for an oppression claim under the Business Corporations Act.

The court made a minor amendment to the order to correct an accidental error regarding declaratory relief, but otherwise dismissed the appeal.

The appellants appealed a trial judgment, alleging that the loan agreements charged a criminal rate of interest.

The Court of Appeal dismissed the appeal, finding that the trial judge was entitled to conclude that more than $78,000 was advanced, meaning the illegal rate of interest was not proven.

The Court also upheld the trial judge's award of substantial indemnity costs, which were in accordance with the loan agreements.