Key Points:
- Background:
- Bigwin was hired by Trade X to conduct an executive search for a Chief Financial Officer (CFO).
- Contract outlined three payment stages totaling $100,000.
- $33,000 upon agreement signing.
- $33,000 upon presentation of three candidates.
- $34,000 upon candidate's acceptance and signing of the offer letter.
- Claims:
- Bigwin claimed $67,000 for breach of contract and duty of honesty and good faith.
- Trade X made the first payment but failed to make the second and third payments.
- Court Findings:
- Trade X breached the contract by not paying the second installment after Bigwin presented more than three suitable candidates.
- Trade X did not breach the contract for the third payment as no formal written offer was accepted and signed by a candidate.
- Trade X breached its duty of honesty and good faith by misleading Bigwin and not allowing the completion of the search process.
- Judgment:
- Trade X ordered to pay Bigwin $67,000 in damages plus interest.
- Trade X to pay costs of $17,832.74 to Bigwin.
- Total Monetary Award: $84,832.74
- Judgment without prejudice to enforcement against Trade X's CEO, who provided a personal guarantee during negotiations.
Conclusion: The Ontario Superior Court of Justice ruled in favor of Bigwin Group Inc., finding Trade X Group of Companies Inc. liable for breach of contract and breach of the duty of honesty and good faith, resulting in financial damages and costs awarded to Bigwin.
