The appellants appealed a trial judgment awarding the respondent damages for wrongful dismissal.
The trial judge found that the two appellant corporations operated as a single business and were common employers of the respondent.
The appellants argued there was insufficient evidence of common control, the action against one corporation was statute-barred, and the trial judge erred in awarding substantial indemnity costs under Rule 49 by failing to deduct hypothetical tax consequences from the damages award.
The Divisional Court dismissed the appeal, finding ample evidence supported the common employer finding, the addition of the second corporation was a valid correction of a misnomer, and Rule 49 comparisons must be based on the actual quantum of damages awarded rather than net tax consequences.