The appellants appealed a trial judgment finding them liable for over $20 million in damages for improperly placing a paving company, Osler, into bankruptcy as part of a fraudulent scheme to deprive the respondents (the Alfano family trusts) of their 87 percent equity interest.
The Court of Appeal upheld the finding of liability against Mr. Piersanti, agreeing that he orchestrated a fraudulent scheme, including concocting a fake shareholders' agreement and assigning the company into bankruptcy.
The Court also upheld the trial judge's decision to exclude the appellants' expert witness for lacking independence and acting as an advocate.
However, the Court allowed the appeal in part by setting aside the liability finding against Ms. Piersanti, reducing the compensatory damages to $14,391,807 based on adjustments conceded by the respondents' expert at trial, and setting aside orders requiring a related company to pay $2.5 million into court and declaring an interest in certain properties.
