The appellants appealed an order striking out their claim of economic duress and effectively dismissing their entire action against the respondent banks.
The motion judge had found that past dealings between the parties could not constitute economic duress to vitiate a restructuring agreement and release.
The Court of Appeal allowed the appeal, holding that the motion judge erred by failing to apply the 'plain and obvious' test for striking pleadings under Rule 21.
The Court found it was not plain and obvious that a claim of economic duress based on past dealings would inevitably fail, and ordered the appellants to file a new, focused statement of claim.