Corporate respondents brought a motion under Rules 14 and 38.10 of the Rules of Civil Procedure to convert an application into an action before the application hearing.
The underlying dispute involved allegations of diversion of corporate assets, claims for $5 million in damages for conversion, punitive damages, and oppression remedies under the Business Corporations Act.
The court held that conversion was appropriate where the matter involved complex factual disputes, credibility issues, and anticipated expert evidence.
Given the magnitude of the damages claims and the likelihood of conflicting expert testimony, a full evidentiary record and viva voce evidence were required.
The court converted the application into an action and imposed procedural directions to expedite the litigation.
