The defendant Garda World Canada Security Corporation brought a motion to strike the amended statement of claim against it, arguing that the plaintiff failed to plead a reasonable cause of action and that it was plain and obvious the claim could not succeed.
Garda contended that as a new shareholder, it was not liable for the alleged breach of contract or negligence of the Primary Response Defendants.
The plaintiff argued that Garda was liable due to a share acquisition and/or amalgamation, citing section 179(b) of the Ontario Business Corporations Act, which transfers all liabilities to an amalgamated corporation.
The court dismissed Garda's motion, finding it was not plain and obvious that the claim against Garda could not succeed, and granted the plaintiff liberty to amend the statement of claim if necessary.
Costs were awarded to the plaintiff.