James F. Diamond

The appellants appealed an order dismissing their proposed counterclaim for abuse of process.

The appellants alleged that the respondents' letter of complaint to the I.D.A. was sent for the improper purpose of extorting a settlement in a civil claim.

The Court of Appeal dismissed the appeal, finding that the proposed counterclaim failed to plead facts of a definite act or threat in furtherance of the illegitimate purpose, which is a required element of the tort of abuse of process.

The appellants, having successfully appealed a trial decision regarding the enforcement of a Florida judgment, moved for the payment out of court of moneys they had posted as security for costs.

The respondents, who had been granted leave to appeal to the Supreme Court of Canada, moved for a stay of execution of the Court of Appeal's judgment.

The Court of Appeal dismissed the appellants' motion, finding it just to maintain the status quo and keep the security in court pending the Supreme Court appeal due to the appellants' non-resident status and potential hardship.

The Court granted the respondents' motion for a stay of execution, accepting an irrevocable $1 million guarantee from the Lawyers Professional Indemnity Company as satisfactory security.