Background:
- The dispute arose over an order placed by Interlen on September 1, 2021, for $282,750 worth of lumber. A prepayment of $50,000 was made, but the lumber was never supplied.
Key Issues:
- Contractual Parties: Whether the contract was with Mr. Sibley personally or with 4325842 Nova Scotia Limited.
- Corporate Veil: Whether Mr. Sibley's actions justified piercing the corporate veil to impose personal liability on him.
- Damages: Whether Interlen was entitled to damages beyond the $50,000 deposit.
Court Findings:
- Contract with Corporation: The court found that the contract was with 4325842 Nova Scotia Limited, not Mr. Sibley personally. Interlen had been informed of the corporate entity during contract formation.
- No Piercing of Corporate Veil: The court did not find sufficient grounds to pierce the corporate veil. Mr. Sibley’s actions, although misleading, did not amount to fraud or an improper purpose to justify personal liability.
- Damages: The court did not support Interlen's claim for expectation damages beyond the deposit, finding no clear evidence of additional loss.
Conclusion:
The court ruled in favor of the defendants, holding that Interlen contracted with the corporate entity and that there were no grounds to hold Mr. Sibley personally liable.
