The Crown appealed a motions judge's decision refusing leave to amend its statement of defence and counterclaim in a breach of contract action regarding a software development project.
The Crown sought to add claims for negligent misrepresentation, professional negligence, and conspiracy against the plaintiff, and to add two related foreign corporate entities as defendants by counterclaim.
The Court of Appeal allowed the appeal, finding that the motions judge erred in concluding the tort claims were barred by the contract's entire agreement clause and in applying a 'presumptive refusal' rather than 'presumptive approval' test for amending pleadings.
