Cold River Resources LLC v. 1279514 Ontario Inc., 2010 ONCA 525

CITATION: Cold River Resources LLC v. 1279514 Ontario Inc., 2010 ONCA 525

DATE: 20100722

DOCKET: C49759

COURT OF APPEAL FOR ONTARIO

O’Connor A.C.J.O., Rouleau and Epstein JJ.A.

BETWEEN

Cold River Resources LLC Frederick Williams

Plaintiffs (Respondent on appeal, Cold River Resources LLC)

and

1279514 Ontario Inc. and IPO Capital Corp.

Defendants (Appellants)

Jeffrey Kaufman, for the appellants

Alistair Crawley and Bruce O’Toole, for the respondent

Heard: July 16, 2010

On appeal from the judgment of Justice A. Hoy of the Superior Court of Justice dated July 30, 2008 and supplemented on November 4, 2008.

APPEAL BOOK ENDORSEMENT

[1] The trial judge correctly set out the law of negligent misrepresentation. In the circumstances of this case, we see no error in the trial judge’s application of the principles set out in Queen v. Cognos, 1993 CanLII 146 (SCC), [1993] 1 S.C.R. 87 (S.C.C.). Further, her conclusion that it was reasonable for the respondent as a potential investor to have relied on assertions from the CEO of the appellant numbered company, a private company, as to the present value, was available on this record.

[2] Although the appellants can point to evidence that could have lead the trial judge to a different conclusion on the critical issues of misrepresentation and reliance, they have not demonstrated that the factual findings of the trial judge disclose a palpable and overriding error.

[3] In all of the circumstances and given the trial judge’s findings of fact, we are also of the view that the damages calculation was reasonable.

[4] The appeal is dismissed. Costs to the respondent fixed in the total amount of $13,429.69.