The appellants appealed a Small Claims Court judgment awarding the respondent $1,500 in general damages and $1,500 in punitive damages for wrongful collection efforts.
The appellants argued the Deputy Judge erred in refusing an adjournment when their counsel was unavailable.
The Divisional Court upheld the refusal to adjourn, finding the decision discretionary and justified.
However, the court allowed the appeal on damages, reducing general damages to $565 for out-of-pocket legal expenses, as there was no evidence of recognizable psychiatric illness to support damages for mental distress.
The punitive damages award was set aside because the collection agency's conduct, while careless and frustrating, was not malicious.
The action against the individual employee was also dismissed.
