The appellant appealed a Small Claims Court judgment ordering him to return $25,000 to the respondent.
The respondent and his wife had invested $35,000 in the appellant's internet start-up company, signing written agreements.
The trial judge found that the appellant had orally agreed to return the money on demand.
On appeal, the appellant argued that the respondent was not a proper party plaintiff and that the trial judge erred in admitting parol evidence of the oral agreement.
The Divisional Court dismissed the appeal, finding that the oral agreement did not contradict the written agreements and fell within the collateral contract exception to the parol evidence rule.
The court also added the respondent's wife as a party plaintiff.