The defendants appealed an order striking their statement of defence for failing to comply with production orders.
The Court of Appeal allowed the appeal, finding the motions judge erred in principle by striking the pleading without reviewing all the affidavit evidence.
The Court concluded the 'ultimate litigation remedy' was not warranted given the defendants' efforts to comply, mutual delay, and limited evidence of prejudice to the plaintiff.
The defendants were ordered to produce all outstanding documents within seven days.
