The appellants appealed a trial judgment that awarded the respondent a 56% equity interest in a leased truck as a remedy for the appellants' failure to provide reasonable notice of termination of an employment agreement.
The Court of Appeal found that the trial judge erred, as the lease agreement did not confer an ownership interest prior to the exercise of the purchase option.
The Court determined the respondent was entitled to $6,000 in damages for two months' notice.
However, the Court also found the respondent breached the lease by failing to return the truck when he stopped making payments, causing a $6,000 loss in depreciation to the appellants.
The Court allowed the appeal, striking the equity award and finding the offsetting damages cancelled each other out, with no costs awarded.