The moving defendants, a lawyer and law firm acting for a mortgagee in a mortgage enforcement proceeding, brought a motion under Rule 21.01 of the Rules of Civil Procedure to strike portions of the amended statement of claim alleging improper withholding of surplus proceeds following a power of sale.
The plaintiff alleged the lawyers attempted to extort a release by withholding trust funds and sought damages for abuse of process, negligence, and breach of ethical duties.
The court held that opposing counsel owe no duty of care or fiduciary duty to an adverse party and that alleged breaches of professional or ethical duties are owed to the court and the governing law society, not to opposing litigants.
As a result, the claims disclosed no reasonable cause of action and were frivolous and vexatious.
The impugned portions of the claim against the lawyer and law firm were struck.