The appellants appealed a trial judgment awarding the respondent damages for breach of a consulting and management contract.
The appellants argued that one of the corporate defendants was not a party to the contract and that the trial judge erred in calculating the damages period.
The Court of Appeal held that the non-party corporation was bound by the contract through its conduct and acceptance of services.
However, the Court found that the trial judge made a palpable and overriding error in interpreting the contract's term.
The Court allowed the appeal in part, reducing the damages award to reflect a five-year initial term.
