Jonathan McDaniel

The plaintiff in a civil rescission action sought an order compelling the defendants to produce the Crown disclosure brief they received in related criminal proceedings concerning the same alleged fraud in a hospital procurement process.

The Attorney General opposed immediate production, arguing it could taint witnesses before they testified in the criminal trial.

The court balanced the interests under the Wagg framework and adjourned the motion sine die, accepting the Attorney General's undertaking to conduct a Wagg review and produce the documents within eight weeks after a verdict in the criminal proceedings.

The plaintiff brought a motion under s. 137.1 of the Courts of Justice Act to dismiss the defendant's counterclaim, arguing it was a SLAPP intended to silence his allegations of a poisoned workplace.

The plaintiff also moved to strike the counterclaim under the Rules of Civil Procedure, amend his statement of claim, and for summary judgment.

The court dismissed the anti-SLAPP motion, finding the plaintiff failed to show the counterclaim arose from his expressions.

The court also denied leave to amend the statement of claim as the proposed claim for deferred bonuses was statute-barred.

The remaining motions were deferred pursuant to the mandatory stay in s. 137.1(5) of the Courts of Justice Act.

The applicants, a syndicate of lenders and various construction trades, sought declarations that the respondent surety could not rescind performance and payment bonds issued for a hospital redevelopment project.

The surety had discovered alleged fraud and collusion in the procurement process and commenced a separate action for rescission.

The applicants argued they were innocent third parties whose rights under the bonds could not be defeated by the alleged fraud of the principals.

The court dismissed the applications, finding that the applicants' rights were derivative of the principals and that rescission remained a possible equitable remedy that must be determined on a full factual record at trial.