The defendants appealed a Small Claims Court judgment awarding the plaintiff $25,000 for breach of a settlement agreement.
The settlement required the defendants to direct an owner's holdback to the plaintiff's counsel and pay an additional $25,000 in post-dated cheques.
The defendants argued that because the holdback was larger than anticipated, they had overpaid and were not required to remit the remaining cheques.
The Divisional Court dismissed the appeal, finding that the defendants breached the clear terms of the settlement agreement, which triggered the default judgment provisions.