The plaintiff moved to amend its statement of claim to add two corporate defendants and assert a fraudulent conveyance claim relating to rights under a letter of intent associated with a hotel development project.
The defendant opposed the amendment on the basis of res judicata, issue estoppel, limitation periods, and abuse of process, and also sought security for costs against the plaintiff corporation.
The court held that the proposed claim was not finally adjudicated in earlier summary judgment proceedings and that the new pleading asserted a different theory based on joint venture ownership and fraudulent conveyance.
The court also rejected the limitation defence, finding the amendment motion was effectively commenced within the limitation period.
The defendant failed to demonstrate that the plaintiff corporation was impecunious or that the action was frivolous and vexatious.