The appellants appealed a summary judgment finding them liable for breach of a joint venture agreement (JVA) and challenging the calculation of expectation damages.
They also sought to introduce fresh evidence on appeal.
The Court of Appeal dismissed the motion for fresh evidence, finding it could have been adduced with reasonable diligence at the summary judgment motion and would not have affected the outcome.
The court upheld the motion judge's findings of a valid JVA and its breach, rejecting the appellants' argument of contractual frustration as the denial of severance was contemplated in the JVA.
The court also affirmed the calculation of expectation damages, noting the appellants' failure to adduce their own expert evidence or cross-examine the respondent's expert at the summary judgment stage.