T. Michael Harris

The appellants appealed a trial judgment awarding the respondent $184,211.58 and declaring an equitable mortgage on their properties for unpaid corporate advances.

The appellants argued the trial judge erred by failing to draw an adverse inference from missing documentation, rejecting a non est factum defence, and finding joint and several liability.

The Court of Appeal dismissed the appeal, finding no palpable and overriding error in the trial judge's factual findings, credibility assessments, or refusal to draw an adverse inference.

The respondent investment dealer terminated the contracts of four sales agents when it closed its Thunder Bay office.

The respondent sued for repayment of transition loans that became due upon termination.

The appellants defended the action, claiming misrepresentation by omission regarding the office closure and equitable set-off.

The motion judge granted summary judgment against two of the appellants.

The Court of Appeal allowed the appeal, finding the motion judge erred in fact and law, and that a fair and just determination required a trial of all claims and counterclaims together to avoid inconsistent verdicts.