Mylex Ltd. appealed a trial judgment finding it liable in contract and tort for failing to meet delivery dates and providing poor quality ready-to-assemble furniture to Magnussen Furniture Inc. Magnussen cross-appealed the damages and costs awards.
The Court of Appeal found that while the trial judge erred in finding an 'overall contract' existed, this did not affect the ultimate liability finding based on breached purchase orders and negligence.
The Court upheld the trial judge's assessment of damages, which limited lost profits to a two-year period due to contingencies, and affirmed the discretionary costs award.
Both the appeal and cross-appeal were dismissed.
