The plaintiff law firm brought two actions against the defendants for unpaid legal accounts.
The defendants pleaded equitable set-off, alleging they were overcharged on previously paid accounts.
The plaintiff brought a motion under Rule 21.01(1)(a) to strike the equitable set-off defence, arguing it was statute-barred by the one-year limitation period in the Solicitors Act.
The court dismissed the motion, finding that material facts were in dispute regarding whether the accounts were interim or final, whether the presumption of acceptance by payment was rebutted, and whether special circumstances existed.
The court also noted that equitable set-off is generally not barred by statutory limitation periods.