Fuller Landau Group Inc.

In an addendum to its earlier reasons dismissing the appeal and cross-appeal, the Court of Appeal addressed the calculation of partnership net profits for the purpose of determining the respondent's damages.

The appellants argued that notional income taxes should be deducted from amounts the trial judge ordered included in corporate income, such as diverted wages and personal expenses.

The Court rejected this argument, finding no evidence that taxes were paid on the diverted funds.

However, the Court ordered the appellants to provide Canada Revenue Agency documentation to prove actual income taxes remitted by one of the corporate defendants, which would be deducted from its net income if substantiated.

The appellants challenged the trial judge's finding that the parties entered into an oral partnership agreement to deliver milk through a numbered company, and disputed the resulting damages award under the OBCA oppression remedy, breach of contract, breach of fiduciary duty, and unjust enrichment.

The Court of Appeal found no reversible error in the trial judge's factual findings regarding the partnership or credibility assessments, and upheld the prejudgment interest calculation as a reasonable exercise of discretion under s. 130(1) of the Courts of Justice Act.

The allegation of judicial bias was dismissed for failing to meet the high threshold to displace the presumption of impartiality.

The appeal and cross-appeal were dismissed, except that further submissions were required on whether income taxes should have been deducted from certain amounts included in the damages calculation.