Harvey Lim

This decision concerns the costs awarded following a successful motion by Mercedes-Benz Canada Inc. to strike the plaintiff's statement of claim for failing to disclose a reasonable cause of action and being frivolous/vexatious.

The court fixed costs at $25,603.51, payable by the plaintiff to Mercedes-Benz Canada Inc. The court rejected the plaintiff's arguments that Mercedes-Benz Canada Inc. delayed in bringing the motion and that the plaintiff's impecuniosity warranted a significant reduction in costs.

The court applied Rule 49.10, awarding Mercedes-Benz Canada Inc. partial indemnity costs up to its offer to settle date and substantial indemnity costs thereafter, finding its "walk-away" offer to be a valid compromise in the context of a motion to strike.

The defendant Mercedes-Benz Canada Inc. moved to strike the plaintiff's statement of claim against it without leave to amend.

The plaintiff alleged that his identity was stolen and used in a 'straw buy' of a luxury vehicle, and claimed Mercedes was liable in negligence, vicarious liability, and waiver of tort for the actions of its franchisee.

The court found that the statement of claim failed to plead material facts to support a duty of care, breach, causation, or compensable damages in negligence, nor did it support vicarious liability or an agency relationship.

The court struck the claim against Mercedes without leave to amend and dismissed the action against it.