The appellants operated a senior citizens residence and borrowed funds through successive mortgages arranged by Morguard.
The trial judge found that Morguard and its officers committed fraud, deceit, and breach of fiduciary duty by overstating discharge amounts, charging excessive undisclosed fees, and hiding a corporate officer's personal involvement in the loans.
The trial judge awarded compensatory damages but declined to award punitive damages.
On appeal, the appellants sought punitive damages and increased compensation, while the respondents cross-appealed liability and damages, relying on a release executed by the parties.
The Court of Appeal dismissed both the appeal and cross-appeals, upholding the trial judge's findings and concluding that the release was properly set aside due to fraudulent misrepresentation.