Canada Judgment

Court of Appeal for Ontario

Riva Plumbing Limited v. Ferrari

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Source document

01

Holding and result

The Court of Appeal concluded the trial judge did not err in law nor commit palpable and overriding errors in fact or mixed fact and law: the appellants failed to prove unlawful competition or breaches of duty, adverse credibility findings were open on the evidence, and the trial judge correctly held that the bonus scheme was non-discretionary and payable pro rata; accordingly the appeal was dismissed and costs awarded to respondents.

Court disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Trial judgment of Justice Robert Centa (2025 ONSC 3219) upheld
  • Ferrari respondents awarded costs of the appeal on a partial indemnity basis in the amount of $48,500 inclusive of disbursements and HST
  • Icon respondents awarded costs of the appeal on a partial indemnity basis in the amount of $45,000 inclusive of disbursements and HST

02

Material facts

Parties

Riva Plumbing Limited

Plaintiff/appellant Counsel: Ralph Cuervo-Lorens; Anna Stabb

MDJL Holdings Ltd.

Plaintiff/appellant Counsel: Ralph Cuervo-Lorens; Anna Stabb

Luca Montanaro

Plaintiff/appellant Counsel: Ralph Cuervo-Lorens; Anna Stabb

Anthony Ferrari a.k.a. Tony Ferrari

Defendant/respondent Counsel: W. Ross MacDougall

531302 Ontario Inc.

Defendant/respondent Counsel: W. Ross MacDougall

Icon Plumbing and Heating Ltd.

Defendant/respondent Counsel: Joseph P. Maggisano; Vanessa Maggisano

Mike Ladisa

Defendant/respondent Counsel: Joseph P. Maggisano; Vanessa Maggisano

Joseph Ferrari

Defendant/respondent Counsel: Joseph P. Maggisano; Vanessa Maggisano

Amounts and remedies

  • Costs Awarded to Ferrari Respondents: CAD 48,500
  • Costs Awarded to Icon Respondents: CAD 45,000

03

Procedural history

  1. Posture

    Civil Appeal / Appeal to Court of Appeal From Superior Court Trial Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The appellants argued the trial judge erred in law in applying fiduciary duty principles, misinterpreted the non-competition terms of the settlement agreement, erred in law in his alternative assessment of damages, and erred in law and on fact in finding against the appellants on bonus entitlement; they framed many grounds as legal errors but in substance attacked factual findings and credibility determinations.
Respondent
The respondents maintained the trial judge made no error of law and did not commit palpable and overriding errors of fact or mixed fact and law; his credibility findings were available on the evidence, the claims of unlawful competition and duty breaches were unsupported, the bonus claimant was correctly awarded a pro rata non-discretionary bonus, and the appeal should be dismissed with costs.

05

Court’s reasoning

  1. 01

    Common law (trial reasons 2025 ONSC 3219)

    Fiduciary duty requires establishing scope of duty and breach under common law

  2. 02

    Contract interpretation principles (common law; trial reasons 2025 ONSC 3219)

    Contractual non-competition clauses are interpreted by objective construction of the agreement and factual matrix

  3. 03

    Appellate review doctrine (common law)

    Apellate courts defer to trial judges on findings of fact and credibility unless there is a palpable and overriding error

  4. 04

    Employment/compensation law principles applied by trial judge (2025 ONSC 3219)

    A non-discretionary bonus that is an integral part of compensation and calculated solely by reference to company profits is payable pro rata where continuing employment is not a condition

06

Ratio, limits and disposition

Ratio decidendi

The Court of Appeal concluded the trial judge did not err in law nor commit palpable and overriding errors in fact or mixed fact and law: the appellants failed to prove unlawful competition or breaches of duty, adverse credibility findings were open on the evidence, and the trial judge correctly held that the bonus scheme was non-discretionary and payable pro rata; accordingly the appeal was dismissed and costs awarded to respondents.

Obiter and limits

  • The appellants framed many grounds as legal errors but their true complaint was with factual findings and credibility assessments
  • Trial judges' credibility findings attract deference absent palpable and overriding error
  • Costs fixed on a partial indemnity basis reflect the Court's assessment of the appeal's merits

Court disposition

Appeal dismissed

  • Appeal dismissed
  • Trial judgment of Justice Robert Centa (2025 ONSC 3219) upheld
  • Ferrari respondents awarded costs of the appeal on a partial indemnity basis in the amount of $48,500 inclusive of disbursements and HST
  • Icon respondents awarded costs of the appeal on a partial indemnity basis in the amount of $45,000 inclusive of disbursements and HST

Source and reliance status

Court of Appeal for Ontario · 24 April 2026

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Judgment reading view

Judgment text

The complete available source text.

Source document

Court of Appeal for Ontario

Judgment· 24 April 2026

2026 ONCA 297

Riva Plumbing Limited v. Ferrari Collection Decisions of the Court of Appeal Date 2026-04-24 Neutral citation 2026 ONCA 297 Docket numbers COA-25-CV-0911 Judges George, Jonathon C.; Copeland, Jill M.; Gomery, Sally A. Subject Civil Decision Content

COURT OF APPEAL FOR ONTARIO CITATION: Riva Plumbing Limited v. Ferrari, 2026 ONCA 297 DATE: 20260424 DOCKET: COA-25-CV-0911 George, Copeland and Gomery JJ.A.

BETWEEN Riva Plumbing Limited, MDJL Holdings Ltd. and Luca Montanaro Plaintiffs (Appellants) and Anthony Ferrari, a.k.a. Tony Ferrari, 531302 Ontario Inc., Icon Plumbing and Heating Ltd., Mike Ladisa and Joseph Ferrari Defendants (Respondents) Ralph Cuervo-Lorens and Anna Stabb, for the appellants W. Ross MacDougall, for the respondents, Anthony Ferrari a.k.a. Tony Ferrari and 531302 Ontario Inc. Joseph P. Maggisano and Vanessa Maggisano, for the respondents, Icon Plumbing and Heating Ltd., Mike Ladisa and Joseph Ferrari Heard and rendered orally: April 21, 2026 On appeal from the judgment of Justice Robert Centa of the Superior Court of Justice, dated May 29, 2025, with reasons reported at 2025 ONSC 3219.

REASONS FOR DECISION [1] The appellants appeal the judgment dismissing their claims that the respondents committed various economic torts, breached fiduciary duties, and that Anthony Ferrari breached the terms of a settlement agreement, which included non-competition terms. In addition, the appellants appeal the judgment in favour of Mike Ladisa in his counterclaim for an unpaid bonus. The appellants abandoned in oral argument the ground of appeal regarding Joseph Ferrari’s bonus counterclaim. [2] The trial judge rejected the appellants’ claims on the basis that the trial evidence failed to prove that any of the respondents competed unlawfully or in breach of any duties owed to the appellants. In making these findings, the trial judge repeatedly made credibility findings adverse to Luca Montanaro, the principal of the appellants. [3] With respect to the counterclaim for the unpaid bonus, the trial judge found that the bonus scheme was a non-discretionary and integral part of Mr. Ladisa’s compensation, based solely on the company’s profits. Continuing employment was not a condition of receiving the bonus. As such, Mr. Ladisa was entitled to a pro rata share of his bonus for the fiscal year ending January 31, 2013. [4] The appellants argue that the trial judge: (1) erred in law in relation to the legal principles governing fiduciary duty; (2) erred in law and made palpable and

overriding errors in his interpretation of the non-competition terms in the settlement agreement; (3) erred in law of his assessment of damages (an assessment that was made in the alternative); and (4) erred in law and made palpable and overriding errors regarding the bonus entitlement in the counterclaims. [5] Although the appellants frame many of their grounds of appeal as errors of law, their real complaints are with the trial judge’s findings of fact. [6] We are not persuaded that the trial judge committed any error of law. Nor are we persuaded that the trial judge made any palpable and overriding error in his findings of fact or mixed fact and law. The trial judge carefully and thoroughly explained his factual and credibility findings based on the evidentiary record before him. The facts he found and the inferences he drew – and did not draw – were open to him on the evidentiary record. [7] The appeal is dismissed. The Ferrari respondents are entitled to their costs of the appeal on a partial indemnity basis in the amount of $48,500, inclusive of disbursements and HST. The Icon respondents are entitled to their costs of the appeal in the appeal on a partial indemnity basis in the amount of $45,000, inclusive of disbursements and HST. “J. George J.A.” “J. Copeland J.A.” “S. Gomery J.A.”

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Authorities

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Cases, legislation, regulations, and constitutional provisions identified in the available record.

Riva Plumbing Limited v. Ferrari, 2026 ONCA 297

Case cited

Riva Plumbing Limited v. Ferrari, 2025 ONSC 3219

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