The plaintiffs, shareholders in Domenic Cosentino and Co. Limited (DCCL), brought a motion seeking an injunction to halt the sale of the company's sole asset, the Wolfedale Road property, an interim preservation order, or a Certificate of Pending Litigation (CPL), alleging oppressive conduct by the controlling shareholders, Mary and Tony Cosentino.
The plaintiffs claimed Mary and Tony had mismanaged company finances, depleted property equity through undisclosed mortgages, and acted without transparency regarding the property sale and their personal financial benefits.
The court found that Mary and Tony's actions were oppressive, establishing a serious issue to be tried and irreparable harm if the sale proceeded without safeguards.
However, the court denied the injunction, preservation order, and CPL, finding that the balance of convenience favored allowing the sale to proceed due to the company's dire financial state and mortgage default.
Instead, the court ordered that the net proceeds of the sale be paid into court, and Tony's disputed commission be held pending trial.