The plaintiffs brought a motion for summary judgment arising from alleged employee fraud involving the sale of company furniture and retention of proceeds.
The defendant admitted converting assets and pleaded guilty in related criminal proceedings to defrauding the employer but disputed the full quantum of damages claimed.
The court held there was no genuine issue requiring a trial on liability given the admissions and criminal conviction.
However, applying the “full appreciation test” from Combined Air Mechanical Services Inc. v. Flesch, the court found that issues regarding the amount of damages and alleged restitution payments required a trial.
Summary judgment was therefore granted on liability only, with damages to be determined at trial.