The plaintiff, 2770095 Ontario Inc., a special purpose vehicle incorporated one day before the assignment, brought an action to recover over $1 million in alleged missing funds from payment processing, assigned from Affinitas Medios de Pago S.A.P.I de C.V. The defendants, Maxwell Dean Morgan and Tricia Edwards, moved to dismiss the action, arguing the assignment was invalid due to champerty and maintenance.
The court found that the assignment of tort claims was champertous, as the plaintiff had no pre-existing commercial or financial interest in the litigation and was created solely to pursue the claim for profit.
The court dismissed the action as an abuse of process and set aside all interim and interlocutory orders, including Mareva injunctions and certificates of pending litigation.
