The plaintiff in a serious motor vehicle personal injury action moved for leave to amend the statement of claim to increase the prayer for relief from $950,000 to $2 million after the action had been set down for trial.
The defendants argued the amendment would be highly prejudicial because it would expose the individual defendants personally beyond their $1 million liability coverage and require retention of excess counsel shortly before trial.
The court held that Rule 26.01 mandates leave absent prejudice that cannot be compensated by costs or an adjournment, and found the defendants had not met that onus because liability issues were unchanged and the amendment concerned only quantum.
Leave was granted, subject to a proportionality-based term requiring the plaintiff to indemnify the individual defendants for excess counsel costs on a substantial indemnity basis if damages above policy limits were not ultimately recovered.
Motion costs were awarded to the plaintiff.