The moving defendants brought a motion to strike out the plaintiff insurers' claims of fraudulent misrepresentation and conspiracy under Rule 21.01(1)(b).
The plaintiffs alleged the defendants engaged in a conspiracy to submit fraudulent medical treatment and assessment claims.
The court found that the plaintiffs had sufficiently pleaded the material facts for fraudulent misrepresentation against the individual defendants, who could be held personally liable for tortious acts.
The court also declined to strike the conspiracy claims, holding that the applicability of the merger doctrine should be determined at trial and that the claims were properly based on unlawful acts under the Insurance Act and Criminal Code.
The motion was dismissed, though two plaintiffs were ordered to amend their pleadings to specify special damages for conspiracy.
