The Severances, defendants by counterclaim, moved to strike a counterclaim brought by Her Majesty the Queen in Right of the Province of Ontario and Carillion Canada Inc. (HMQ) in the Subject Action.
HMQ's counterclaim sought contribution and indemnity for claims asserted against them in a separate Barrie Action, where the Severances were not parties.
The court found that HMQ's counterclaim was procedurally improper under Rule 21.01(1)(b) as it did not disclose a reasonable cause of action in the Subject Action, as such claims should be brought as third-party claims in the Barrie Action.
The motion to strike was granted without leave to amend, though HMQ was not prejudiced from seeking leave to add the Severances as third parties in the Barrie Action.
