The plaintiff entered into a contract for job-search services with BH International and paid a fee.
When BH closed its Canadian operations, its former employee, the defendant Smith, started a new job-search agency, RD Group International.
The trial judge found RD and Smith liable to refund the plaintiff's fee, concluding RD was a successor to BH based on a memorandum sent to clients.
On appeal, the Divisional Court set aside the judgment, finding a palpable and overriding error as the memorandum provided no evidence of successor liability or assumption of contracts, and there were no grounds to pierce the corporate veil to hold Smith personally liable.