Kate Broer

The defendant moved under Rules 21.01(1)(a) and 51.06 for a declaration that the plaintiffs had irrevocably elected to affirm a settlement agreement and therefore could not pursue rescission in the alternative.

In a complex commercial dispute arising from the termination of margin facilities and liquidation of hedge fund assets during the 2009 financial crisis, the court held that the factual matrix, discovery record, and alleged misrepresentations were too complicated to resolve on a paper record on the eve of trial.

The court was not satisfied that the pleadings or discovery admissions established the necessary elements of election, nor that a forced election between inconsistent remedies should be imposed at that stage.

The motion was dismissed, leave to amend was granted, and costs of $100,000 inclusive were awarded to the plaintiffs.

The plaintiff, who was previously investigated for stock fraud and entered into a settlement agreement with the Ontario Securities Commission, sued 67 defendants for malicious prosecution, negligent investigation, and other torts.

Ten motions were brought by 64 defendants to strike the pleadings and dismiss the actions.

The court dismissed the action against the Attorney General of Ontario because the malicious prosecution claim could not succeed, as the criminal proceedings were stayed pursuant to a settlement and thus not terminated in the plaintiff's favour.

The actions against the remaining moving defendants were dismissed as an abuse of process because they attempted to re-litigate facts already settled or judicially determined in prior proceedings.