The Plaintiffs, minority shareholders, moved for summary judgment against the Defendants, majority shareholders and a related corporation, alleging breaches of a shareholders' agreement and oppressive conduct under the Ontario Business Corporations Act.
The Defendants failed to respond to the motion.
The court found that the Defendants had treated the Plaintiffs oppressively, breached the shareholders' agreement by selling property without consent, disbursing funds improperly, and failing to transfer shares despite receiving payment.
The court granted declarations of oppressive conduct and breach of agreement, ordered specific share redemptions, reimbursement for mortgage payments, and joint and several liability for the Defendants.
The Defendants' counterclaim was dismissed.
Punitive damages were denied due to insufficient notice, but full indemnity costs were awarded to the Plaintiffs due to the Defendants' oppressive conduct and lack of viable defense.