The appellants appealed a motion judge's decision striking their statement of claim without leave to amend.
The claim sought to set aside a transfer of real property to the respondent, alleging an oral promise by their parents to gift the property to the appellants' company.
The Court of Appeal found the motion judge's reasons sufficient and agreed with the characterization of the claim as a promise to make a gift.
However, the Court held that the motion judge erred by failing to grant leave to amend the pleading under Rule 26.01 of the Rules of Civil Procedure.
The appeal was allowed, and the appellants were granted leave to amend their statement of claim to plead an oral agreement concerning the property.