E. Lax

A former equity partner withdrew from an accounting partnership and joined a competing firm, triggering a liquidated damages clause requiring payment equal to two times the partner’s “permanent capital.” The dispute concerned whether shareholder loans made through a related corporation formed part of “permanent capital” under the partnership agreement.

The court interpreted the agreement according to its plain language and held that permanent capital was equivalent to the partner’s capital account in the partnership, which had been equalized to $10,000 and did not include shareholder loans.

The plaintiff was therefore liable for $20,000 in liquidated damages but was entitled to repayment of capital, profit share, shareholder loan amounts, and related payments.

Allegations of fiduciary misconduct and various counterclaims by the partnership, including claims for suppressed work‑in‑progress and loss of opportunity damages, were rejected.

The representative plaintiff in a proposed class proceeding sought leave to discontinue the action under s. 29(1) of the Class Proceedings Act, 1992.

The claim concerned retiree health benefits allegedly promised to spouses of employees who accepted an early retirement program.

The representative plaintiff ceased to have a personal cause of action after his spouse predeceased him and he was unable to find another class member willing to assume the representative role.

The court held that, given the small class size, lack of interest among potential class members, and the marginal economics of the litigation, discontinuance was appropriate.

Leave to discontinue was granted subject to notice being provided to potential class members.

In a defamation trial concerning an allegedly defamatory newspaper article also posted online, the plaintiff sought to introduce evidence of republication on third‑party websites based on Internet search results.

The court considered the rule that each republication of a libel is a separate publication and that the original publisher is not liable for subsequent republications unless an exception is pleaded, such as where repetition is the natural and probable consequence of the original publication.

The court reviewed authorities confirming that pleadings in defamation actions must specifically allege such exceptions.

Because the statement of claim did not plead the republication exception and no amendment had been sought despite notice from the defendants, the court held the plaintiff could not introduce evidence of republication by other Internet sites.

The evidentiary request was therefore refused.

A certified class proceeding alleged that a manufacturer negligently designed, tested, marketed, and monitored mechanical heart valves coated with a silver-based antimicrobial surface.

The plaintiffs argued that the coating impaired tissue healing and increased the risk of complications including paravalvular leak, thromboembolism, and death.

After an extensive common‑issues trial involving scientific, epidemiological, and regulatory evidence, the court found the manufacturer exercised reasonable care in product design, testing, and post‑market surveillance.

The court concluded that the coating did not adversely affect tissue healing and did not materially increase the risk of most alleged complications, except for a temporary increase in paravalvular leak risk in the early post‑implant period.

Because negligence and causation were not established, the class action was dismissed.