The defendants brought a motion under Rule 21.01(1)(b) of the Rules of Civil Procedure to strike portions of the statement of claim for disclosing no reasonable cause of action and, alternatively, sought security for costs under Rule 56.01(d).
The court held that a pleading need not expressly name a cause of action provided it pleads sufficient material facts to support a recognized legal claim.
While the claim adequately pleaded causes of action including knowing assistance and inducing breach of contract, the allegation of fraud was materially deficient because it failed to provide particularized allegations against each moving party as required by Rule 25.06(8).
The court struck the fraud allegation with leave to amend but dismissed the remainder of the motion.
The request for security for costs was also dismissed because the evidence of a small PPSR registration did not establish good reason to believe the plaintiff lacked sufficient assets to satisfy a potential costs award.
