The plaintiffs, Greenwald et al., brought a motion seeking an extension of time to set their action down for trial and leave to amend their statement of claim to add Monterey Park Inc. as a defendant.
The action concerned alleged construction deficiencies in a house purchased from Ridgevale Inc. The plaintiffs argued that Monterey Park Inc., controlled by one of the existing defendants, was an alter ego of Ridgevale Inc. and the true vendor.
The court granted the motion, finding that the plaintiffs provided an adequate explanation for the delay in advancing the litigation and that the defendants would not suffer non-compensable prejudice.
Regarding the amendment, the court determined that the claim against Monterey Park Inc. was not statute-barred, as the plaintiffs only discovered sufficient information to advance the alter ego claim in June 2014.
Crucially, the Master emphasized that the underlying merits of a proposed claim are not a relevant factor to consider on a motion to amend pleadings under Rule 5.04(2) of the Rules of Civil Procedure.