The appellant appealed a trial decision regarding the interpretation of a Share Purchase Agreement and the calculation of an earn-out provision (Target EBITDA).
The trial judge had found that the respondents constructively dismissed two key salespeople and engaged in oppressive conduct, reducing the Target EBITDA accordingly, but refused to further reduce it by a settlement amount the respondents received for a stolen book of business.
The trial judge also refused to adjust the Lower Threshold in the earn-out formula.
The Divisional Court dismissed the appeal, finding no error in the trial judge's contractual interpretation or his crafting of the oppression remedy, which properly validated the reasonable expectations of the parties as set out in the agreement.
A cross-appeal on costs was also dismissed.