David Nuri

Following a trial where the plaintiffs' claims were dismissed and the defendants' counterclaim was granted in part, the parties made submissions on costs.

The defendants sought substantial indemnity costs based on the plaintiff's oppressive conduct and a prior award of punitive damages.

The court declined to award substantial indemnity costs to the defendants, finding it would result in double compensation, and instead awarded partial indemnity costs subject to a significant discount for time spent on unsuccessful allegations.

The court also awarded substantial indemnity costs to a defendant to the counterclaim who successfully defended against unproven allegations of fraud.

The plaintiff, the former President of a family-run painting corporation, brought an action for oppression and wrongful dismissal after being terminated and removed as a director.

The defendants counterclaimed for breach of fiduciary duty, alleging the plaintiff misappropriated corporate funds, redirected rebates, and performed cash jobs for personal benefit.

The Superior Court of Justice dismissed the plaintiff's claims, finding his termination was justified for cause due to his dishonest conduct.

The court granted the counterclaim in part, ordering the plaintiff to pay $470,000 for redirected rebates and cash jobs, refund unauthorized transfers, disgorge profits, and pay $75,000 in punitive damages for reprehensible self-dealing.