The plaintiff, A.J. Lanzarotta Wholesale Fruits & Vegetables Ltd., sought judgment against the defendants (United Farmers, 2773125 Ontario Inc., Janet Michelle Brunton, and Wayne D. King) in an uncontested trial after their statement of defence was struck.
The action was grounded in fraudulent misrepresentation and deceit related to the defendants' scheme to obtain large quantities of food products on credit.
The court found the defendants liable for civil fraud, pierced the corporate veil to hold the individual defendants personally liable, and awarded compensatory damages for the cost of goods sold and various consequential losses, but not lost profits.
Punitive damages were also awarded against the individual defendants, and the judgment was declared to survive bankruptcy.
