The defendant brought a motion under Rule 25.11 of the Rules of Civil Procedure to strike paragraphs of the statement of claim, arguing they were irrelevant, scandalous, or an abuse of process.
The challenged paragraphs pleaded that the plaintiff's sole director, Mr. Syed, suffered from bipolar disorder and was incapable of managing his affairs when an agreement of purchase and sale (APS) was signed.
The court granted leave for the plaintiff to amend the claim to plead that the defendant knew or ought to have known of Mr. Syed's mental incapacity and to describe him as the "directing mind" of the corporation.
However, the court limited the scope of mental health evidence to the relevant period of the transaction.
The motion to strike was partially granted with leave to amend, and partially dismissed, as the court found the law on corporate mental incapacity in contract was not sufficiently clear to strike the pleadings entirely.