The plaintiff, a minority shareholder in a closely held real estate joint venture, brought an oppression action against the majority shareholders.
The dispute arose after the plaintiff was forced to resign as a director following allegations of misappropriating a minor corporate opportunity.
Subsequently, the defendants made two cash calls and granted a mortgage that significantly diluted the plaintiff's interest in the corporation.
The court found that the defendants' actions, particularly the granting of a mortgage for an amount greater than the corporation's immediate needs, unfairly disregarded the plaintiff's interests and constituted oppression under s. 248 of the OBCA.
The court ordered the defendants to buy out the plaintiff's shares at a valuation of $858,468.31, awarded the plaintiff a portion of a deferred management fee, and ordered two of the defendants to pay $25,000 in punitive damages for their reprehensible conduct.