Former partners in a private school brought an action alleging breach of a buy‑out agreement following their resignation from the partnership.
The remaining partner asserted a set‑off, alleging the former partner breached a non‑solicitation and good faith clause in the partnership agreement by interfering with a student’s enrolment.
The court held the defendant failed to prove, on a balance of probabilities, that the plaintiff solicited, enticed, or interfered with the student or breached the partnership agreement.
As the alleged breach was unproven, the claimed set‑off failed and the plaintiffs established their entitlement to amounts owing under the buy‑out agreement.
Judgment was granted for damages, interest under the Courts of Justice Act, and costs.