Case information

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Commercial law – Joint ventures – Defamation – Damages – Whether the Court of Appeal erred in stating that Applicants paid $26,000 on behalf of Respondents – Whether the judge erred in that Applicant exaggerated the defamation as Respondent made defamatory statements.

The Respondent, M.A. Concrete Ltd. (“MAC”) is a company in the business of installing concrete and gypsum underlayment of floors. Mr. Steven Schwartz purchased MAC in 1989. MAC and the Applicant, Ms. Truter and her company, Avantgarde Coatings Inc. entered into a Joint Venture Agreement (the “JVA”), with option to purchase, the terms of which provided that Ms. Truter and Avantgarde agreed to pay a non-refundable deposit amount of $100,000 for the option to purchase MAC within two years at a price of $1,400,000; Ms. Truter and MAC agreed to collaboratively develop MAC’s business during the JVA period; and MAC agreed to pay Ms. Truter a monthly consultancy fee. Ms. Truter ultimately decided not to proceed with the purchase of MAC and she withdrew all remaining funds from the new operating account without informing Mr. Schwartz. Litigation was commenced between the parties.

The trial judge awarded damages to both sides. After all appropriate credits were accounted for $1,815.93 was owed by the Applicants to the Respondents. On the defamation claim, the trial judge rejected Mr. Schwartz’s defence of justification and ordered damages of $25,000 in favour of Ms. Truter. The Court of Appeal dismissed the appeal on all grounds except to the extent to modify the order to provide that Ms. Truter be awarded 75% of her costs in respect of the counterclaim.