The appellants appealed a summary judgment decision granting the respondent judgment on its claim without set-off or stay pending the counterclaim.
The appellants raised three grounds of appeal: (1) that the motion judge failed to apply the appropriate test on summary judgment regarding equitable set-off and the interconnection of the claims; (2) that the motion judge erred in granting partial summary judgment; and (3) that the motion judge erred in piercing the corporate veil to impose personal liability on the individual appellant.
The Court of Appeal upheld the lower court decision on all grounds, finding that the claims were not so closely connected as to warrant equitable set-off, that no inconsistency issues arose from the partial judgment, and that the circumstances supported personal liability based on the individual's control and direction of the company's actions.
