The respondents sued the appellant for $580,000 paid pursuant to an oral contract for temporary foreign worker employment positions, alleging the contracts were fraudulent.
The appellant counterclaimed for $170,000 and pleaded equitable set-off.
The motion judge struck the defence of set-off.
On appeal, the Court of Appeal allowed the appeal, finding the motion judge failed to apply the Telford factors for equitable set-off and that the appellant's claim was proper given the close connection between the parties' claims.