The Plaintiffs moved to strike the Defendants' Statement of Defence for repeated non-compliance with court orders and failure to deliver a proper Affidavit of Documents.
The court found the Defendants' explanations for delay unacceptable, particularly regarding the late production of hundreds of additional documents and their counsel's inappropriate conduct.
While acknowledging strong grounds to strike the defence, the court deemed it a draconian remedy and instead dismissed the motion on strict terms.
These terms included the Defendants paying $12,500 in substantial indemnity costs for wasted discovery, serving properly sworn and complete Affidavits of Documents, and consenting to case management.
The court also recommended the appointment of a case management judge due to the case's complexity, protracted delays, and ongoing communication issues between parties.