The appellants, representing a local union, appealed a trial judgment that dismissed their claims for breach of fiduciary duty and breach of confidence against former union employees who left to form a competing union.
The respondents cross-appealed the trial judge's finding that they breached their duty of loyalty by soliciting union stewards before resigning, and the damages awarded for that breach.
The Divisional Court upheld the trial judge's findings on liability, concluding that the former business manager was not a fiduciary and that the employees breached their duty of loyalty by competing while still employed.
However, the court allowed the cross-appeal on damages, reducing the awards to nominal damages of $500 per employee because the union failed to prove the breach caused actual financial loss.