The plaintiffs and the defendant Robert Langlois entered into a joint venture to operate a powder-coating business, ACS.
Mr. Langlois licensed his powder-coating know-how and expertise to ACS.
Before ACS generated any revenue, Mr. Langlois secretly formed a competing business, PCS, with the defendants Jeffrey Sugar and Gary Sugar.
Mr. Langlois diverted corporate opportunities, including a lucrative powder-coating contract, to PCS and later to VML.
The plaintiffs sued for breach of contract, breach of fiduciary duty, and knowing assistance.
The court found that Mr. Langlois breached the Licence Agreement and his fiduciary duties by misappropriating corporate opportunities.
The court also found that Jeffrey Sugar and Gary Sugar knowingly assisted in these breaches.
The court ordered disgorgement of profits and repayment of loans and expenses, holding the defendants jointly and severally liable.
