The defendants brought a motion under Rule 21.01(1)(b) of the Rules of Civil Procedure to strike the plaintiffs’ statement of claim on the basis that it disclosed no reasonable cause of action, or alternatively to strike portions alleged to be scandalous, frivolous, or vexatious under Rule 25.11.
The claim alleged that the defendants conspired to remove the plaintiffs from corporate control and divert the business of two companies to another entity controlled by the defendants.
The court held that, assuming the pleaded facts to be true, the statement of claim disclosed multiple viable causes of action including breach of contract, breach of fiduciary duty, unjust enrichment, inducing breach of contract, civil conspiracy, and breaches of corporate duties.
The court also declined to strike contextual narrative allegations from the pleading, finding they were not so egregious as to warrant removal.
The motion was dismissed, with the court noting that a demand for particulars would have been the more appropriate procedural step.