This is an appeal from a Superior Court judgment that found the appellants liable for fraudulent misrepresentation and pierced the corporate veil.
The underlying dispute involved a three-way agreement for medical gloves, where the appellants, acting as distributors, failed to deliver a significant portion of goods and misrepresented their "factory direct" relationship with the manufacturer.
The trial judge found the appellants engaged in fraudulent misrepresentation in Canada, leading to the plaintiff's losses, and held the individual principals personally liable.
On appeal, the appellants challenged the application of the corporate veil piercing test, the trial judge's distinction between Canada-based and China-based fraud, and the costs award.
The Court of Appeal dismissed the appeal, affirming that fraudulent misrepresentation constitutes "conduct akin to fraud" for piercing the corporate veil, that the trial judge's analysis of distinct frauds was within the pleadings, and that the costs award was a discretionary matter warranting no interference.