Michael Kleinman

The appellants appealed an order refusing to set aside a default judgment on a counterclaim.

The Court of Appeal dismissed the appeal, finding no error in the motion judge's conclusion that the appellants failed to maintain an intent to defend during the nearly two-year default period.

The failure to defend was not a mere technical slip.

The appellants appealed a trial judgment awarding the respondent damages for wrongful dismissal, a 5% equity interest in two corporations, an oppression remedy, exemplary damages, and damages for breach of fiduciary duty.

The Court of Appeal upheld the 10-month notice period for wrongful dismissal and the award of exemplary damages against the employer corporation due to the egregious circumstances of the termination.

The Court also upheld the respondent's entitlement to a 5% equity interest in the employer corporation and the oppression remedy.

However, the Court set aside the equity interest in the holding company, the damages for breach of fiduciary duty, and the trial judge's decision to pierce the corporate veil, finding no legal basis to hold all defendants jointly and severally liable.