Background:

• A joint venture agreement (JVA) was signed in September 2018 between Colonna and Rossi Consulting for the development of a property in Innisfil, Ontario.
• Colonna advanced $200,000 to purchase the property.
• The development project was mismanaged by Fellin, leading to breaches of the JVA, including misrepresentations and misuse of funds.

Lower Court Findings:

1. Valid JVA: The agreement was binding.
2. Breach of JVA: Rossi failed to perform essential obligations such as registering a mortgage, preparing development plans, and obtaining necessary permits.
3. Damages: Colonna awarded $609,928.15 in expectation damages.
4. Punitive Damages: Denied due to lack of fraudulent intent.

Appeal Points:

1. Liability: Challenged the finding of breach.
2. Calculation of Damages: Disputed the amount awarded.
3. Fresh Evidence: Sought to introduce new documents.

Court of Appeal Analysis:

• Fresh Evidence: Denied as it could have been presented earlier and would not have altered the lower court's decision.
• Liability: Affirmed that there was no frustration of contract as the inability to sever the property was foreseeable and addressed in the JVA.
• Damages: Upheld based on reasonable hypotheticals and expert testimony. The appellants failed to provide counter-evidence during the summary judgment.

Decision:

• Appeal dismissed.
• Costs of $15,000 awarded to Colonna.

Key Points:

• The JVA explicitly planned for the development of the property regardless of severance approval.
• The appellants' failure to meet their obligations under the JVA justified the summary judgment.
• Introduction of fresh evidence on appeal is strictly scrutinized, particularly if it could have been presented initially.
• The Court emphasizes the need for parties to present their best case during summary judgment to avoid appeal complications.