Background:
Lee Smith sued Dawgs Canada Distribution Ltd., Steven Mann, Angie Friesen, and others, claiming a breach of an oral agreement regarding his 8% ownership in the Dawgs Clogs business. The defendants denied the agreement and counterclaimed, alleging Smith engaged in competing activities and passing off.

Legal Issues:

1. Formation of Contract: Whether a legally enforceable contract existed between Smith and Steven Mann, granting Smith a proportionate ownership share in Dawgs Clogs in exchange for financial investment and business efforts.
2. Breach of Contract: Whether Steven Mann and Dawgs Canada Distribution Ltd. breached the agreement by failing to provide Smith his ownership interest.
3. Counterclaim: The defendants alleged Smith carried on a competing business and engaged in passing off, harming the Dawgs brand.

Findings:
The court ruled there was a valid contract entitling Smith to an 8% ownership interest. Steven Mann and Dawgs Canada Distribution Ltd. were found liable for breaching this agreement. The court dismissed the counterclaim, finding no evidence of wrongdoing by Smith.

Costs and Awards:

• Smith’s claims against Angie Friesen, Barrie Mann, and other corporate entities were dismissed. Each bore their own costs.
• Smith was awarded taxable costs at the Column 3 level against Steven Mann and Dawgs Canada Distribution Ltd.
• Specific damages or remedies were deferred for later proceedings.

This case emphasized contractual obligations, fiduciary duties, and business equity within partnerships.