Executive Summary: Key Legal and Evidentiary Issues

• Defendant’s repeated failure to participate in pre-trial conferences and comply with court-ordered deadlines.

• Plaintiff’s evidence, including unpaid invoices and services rendered, remained unchallenged due to defendant’s absence.

• Court proceeded in the defendant’s absence, applying rules for default where a party fails to appear.

• Breach of contract established by plaintiff’s clear documentation of services and unpaid balances.

• Claim for aggravated damages denied due to lack of evidence and improper party seeking such damages.

• Additional relief for asset preservation denied due to insufficient notice and lack of supporting evidence.

Facts of the case

Shattered Window Productions Ltd. brought an action against RT7 Inc. for unpaid invoices related to production services provided for a series of projects, including short films for the Ontario Real Estate Association. The plaintiff’s responsibilities included budgeting, casting, hiring, and supervising crew, as well as directing and managing production. Over the course of the business relationship, Shattered Window issued 25 invoices totaling $177,578.50, of which RT7 paid $91,625.54, leaving an unpaid balance of $85,952.96. Despite attempts to resolve the dispute, RT7 failed to pay the outstanding amount or challenge the invoices.

Procedural history and conduct of the parties

RT7 Inc. did not participate meaningfully in any of the five pre-trial conferences, often failing to attend without sufficient explanation or failing to provide required documentation. The defendant also did not comply with the court-ordered timetable for exchanging trial evidence and did not appear at trial, despite being given additional time as required by the Rules of Civil Procedure. As a result, the court allowed the trial to proceed in RT7’s absence.

Discussion of policy terms and clauses at issue

The dispute centered on the contractual obligations between the parties. The court found that RT7 had breached its contract with Shattered Window by failing to pay the invoices in full. The plaintiff sought damages for breach of contract and also claimed aggravated damages for intangible harm. The court reviewed the principles for awarding such damages, referencing Hadley v. Baxendale and Fidler v. Sun Life Assurance Co. of Canada, but concluded there was no evidence that intangible harm was within the reasonable contemplation of the parties at the time of contract formation. Furthermore, the court found that the corporate plaintiff could not recover aggravated damages for mental distress suffered by its director.

Outcome

The court granted judgment in favor of Shattered Window Productions Ltd. for $85,952.96 as damages for breach of contract, plus prejudgment interest from February 9, 2018, to the date of judgment. The court denied the request for aggravated damages and for an order requiring RT7 to pay proceeds of a pending sale of assets into court, citing lack of notice and insufficient evidence. Costs were fixed at $19,035.18, inclusive of disbursements and taxes, to be paid by RT7 to Shattered Window. In summary, Shattered Window Productions Ltd. was the successful party, awarded a total of $85,952.96 in damages and $19,035.18 in costs, with the precise amount of prejudgment interest not specified in the decision.