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Appeal dismissed; shareholder not personally liable for corporate debt absent an agreement to assume liability.
The appellants appealed the dismissal of their action seeking to hold the respondent personally liable for half of their jointly owned corporation's debt.
The appellants argued that an agreement to share profits equally implied an agreement to share debts equally, and that the respondent had admitted personal liability.
The Court of Appeal dismissed the appeal, upholding the trial judge's finding that the parties understood they were limiting their personal liability by operating through a corporation and had not agreed to assume personal liability for corporate debts.
Motion to lift stay of execution granted due to respondent's financial hardship and weak appeal merits.
The respondent in an appeal brought a motion to lift the automatic stay of execution on a trial judgment awarding him wrongful dismissal damages, pre-judgment interest, and costs.
The appellant had initially only appealed the portion of the judgment awarding damages for the value of shares, but later filed a supplementary notice of appeal challenging the wrongful dismissal damages.
The court applied the three-part test for lifting a stay, finding that the respondent demonstrated financial hardship, the appellant's financial condition was deteriorating, and the merits of the wrongful dismissal appeal were weak.
The motion to lift the stay was granted.
