The appellants appealed a trial judgment that found them liable for a $15,653 breach of contract committed by the main defendant, Nicholas Bulut, and awarded substantial indemnity costs against all defendants without hearing submissions.
The Divisional Court allowed the appeal, finding no legal basis in contract, corporate veil piercing, or unjust enrichment to hold the other defendants liable for Nicholas Bulut's breach.
The Court also set aside the trial judge's costs award due to a breach of procedural fairness and natural justice, as the trial judge refused to hear submissions.
The Court substituted its own costs order, awarding the appellants partial indemnity costs from the date of their Rule 49 offer to settle.