The appellants appealed a trial judgment finding they made fraudulent misrepresentations inducing the respondents to purchase a restaurant business.
The trial judge ordered rescission, general damages, punitive damages, and substantial indemnity costs.
The Court of Appeal upheld the finding of fraudulent misrepresentation, rescission, and punitive damages.
However, the Court reduced the general damages by $70,000 due to a lack of evidence for a management fee claim.
The Court also reduced the costs award, holding that awarding substantial indemnity costs based on the same conduct that justified punitive damages amounted to double compensation.