The appellant appealed a trial judgment that reduced its damages for a breached commercial sublease due to a failure to mitigate, and dismissed its claims against the individual respondent for inducing breach of contract.
The Court of Appeal held that the appellant had no obligation to renegotiate the sublease to mitigate damages, increasing the judgment against the corporate respondent.
However, the Court upheld the dismissal of the personal claims against the individual respondent, finding he acted in good faith as the directing mind of the corporation, which breached the lease simply due to a loss of revenue.
The award of solicitor-and-client costs to the individual respondent was also upheld due to unsubstantiated allegations of fraud.
