The appellants appealed a trial judgment finding them liable for fraud and breach of contract related to a carpet supply and installation contract with a public housing corporation.
The trial judge found the appellants engaged in a deliberate scheme of falsifying invoices and supplying substandard materials, awarding compensatory damages, punitive damages, and full indemnity costs.
The Court of Appeal upheld the trial judge's findings on liability, compensatory damages, and costs, confirming that a contractual stop-payment clause was not a penalty or liquidated damages provision.
However, the Court allowed the appeal in part to set aside the joint and several nature of the punitive damages award and the punitive damages awarded against the deceased employee's estate, leaving the principal appellant solely liable for the punitive damages.
