Background:
XTL Inc. (XTL) contracted FPS Food Process Solutions Corporation (FPS) to build a large industrial freezer for $3,050,000. XTL paid $762,500 but failed to secure financing, leading to the project's suspension.

Legal Arguments/Issues:
XTL sought the return of its $762,500 payment, arguing that FPS incurred unreasonable costs after the project was halted. FPS counterclaimed for lost profits and sought reliance damages for expenses incurred.

Key Findings:

• The court found that FPS had clearly communicated to XTL on January 5, 2016, that it would cease work unless further payments were made.
• FPS continued to incur expenses after this date at its own risk, failing to mitigate losses.
• The court ruled that FPS could not claim both reliance and expectation damages concurrently, dismissing FPS's counterclaim for lost profits due to insufficient evidence.

Costs/Award:
The court awarded XTL a partial return of its payments after deducting $378,236.87 NZD for FPS's legitimate expenses up to January 5, 2016. Additional costs of $8,155.79 CAD for travel and installation were also deducted. XTL was awarded pre- and post-judgment interest, and the court awarded costs at Scale B to XTL as the substantially successful party.