C. Wetmore

The plaintiff condominium corporation appealed an Associate Justice's order striking several paragraphs from its Fresh as Amended Statement of Claim.

The underlying action alleged that the defendants conspired to cause the plaintiff to release easements over adjacent land for little or no value.

The Associate Justice struck paragraphs referring to the financial position of non-parties as irrelevant and scandalous, and struck other paragraphs for pleading evidence rather than material facts.

The Superior Court of Justice dismissed the appeal, finding no error in principle in the Associate Justice's exercise of discretion.

The defendant moving party brought a motion to discharge a Certificate of Pending Litigation (CPL) registered against a 700-acre property.

The property was sold to the moving party under a power of sale while concurrently being sold by the owner to the plaintiffs.

The court found that there were triable issues regarding the validity of the power of sale and whether the moving party was a bona fide purchaser for value without notice.

The court concluded that the equities favoured maintaining the CPL to prevent the property from being encumbered or sold before trial, and found no material non-disclosure by the plaintiffs when they initially obtained the CPL ex parte.

The motion to discharge the CPL was dismissed.

Following a prior order requiring disclosure of the identity of a person who paid the bankrupt's legal fees, the court addressed the appropriate costs award.

The trustee sought substantial indemnity costs, arguing the bankrupt’s earlier motion lacked merit, while the bankrupt requested that no costs be awarded due to the allegedly novel legal issue.

The court held that the bankrupt’s position on privilege, although unsuccessful, was arguable and did not justify substantial indemnity costs.

Applying the factors under Rule 57.01 of the Rules of Civil Procedure, the court concluded that costs should follow the event but that the amount sought was excessive.

The court fixed partial indemnity costs payable by the bankrupt to the trustee at $7,000 inclusive of disbursements and HST.