The defendant sought leave to amend its statement of defence to assert adverse possession and add a counterclaim claiming ownership of disputed land.
The plaintiff argued the amendment constituted withdrawal of an admission because the original defence relied on acquiescence, which would defeat an adverse possession claim.
The court held that the original pleading did not clearly amount to an admission but assumed it might and applied the test for withdrawal of admissions.
The proposed amendment raised a triable issue, the defendant provided a reasonable explanation based on newly discovered aerial photographs supporting historical possession, and no non-compensable prejudice was established.
Leave to amend the pleading and assert the counterclaim was granted.
