The plaintiffs, Andrew and Selena Stronach, brought motions to strike out portions of the defendants' Fresh as Amended Statements of Defence under Rule 25.11 of the Rules of Civil Procedure.
The plaintiffs argued that the impugned pleadings improperly referenced documents and communications that were subject to settlement privilege arising from a confidential judicial mediation.
The defendants argued that the plaintiffs had waived privilege or that an exception applied based on the justice of the case.
The court found that the mediation was subject to settlement privilege, the plaintiffs had not waived the privilege, and no exception applied.
The court granted the motions to strike the pleadings relating to the mediation.
The court also struck out portions of one defendant's pleading as scandalous, but dismissed a motion to require another defendant to reinstate a withdrawn admission.