• Background:

  • The respondents, Edward Perks and May McConaghy, invested $50,000 each in Hetti Group for residential construction projects. Interest payments stopped in 2016, and the Hetti Group’s projects failed in 2018 without repayment.
  • The motion judge granted summary judgment, piercing the corporate veil and finding the Hetti Group's controlling individuals personally liable.

• Key Issues:

  1. Summary Judgment: No genuine issue required trial; the Hetti Group lacked an arguable defense.
  2. Corporate Veil: Found to be a sham; personal liability imposed on Hettiarachichi and De Silva due to misuse of investor funds.
  3. Limitations Act: Claim not statute-barred; 2017 email acknowledged the debt, satisfying the Limitations Act.

• Appeal Decision:

  • Agency and Acknowledgement: The Sugi Defendants were agents, and their 2017 email constituted a valid debt acknowledgment.
  • Corporate Veil: Piercing was upheld due to fraudulent misuse of funds.
  • Appeal dismissed; costs of $5,000 awarded to the respondents.

This case emphasizes liability for misuse of funds and the application of corporate veil piercing in fraud-related circumstances.