The individual appellant, a 50 percent shareholder in the corporate appellant autobody shop, was injured in a motor vehicle accident caused by the respondents.
The individual appellant could no longer perform heavy physical labour, causing the corporate appellant to hire replacement labour and suffer a loss of profits.
The Supreme Court of Canada held that the corporate appellant could not recover its pure economic loss, as it was a contractual relational economic loss that lacked sufficient proximity and foreseeability.
However, the Court restored the trial judge's award of $290,000 to the individual appellant for loss of earning capacity, finding no palpable and overriding error to justify the Court of Appeal's interference.
