Lynne O’Brien

In four proposed class actions concerning investments in syndicated mortgages for land development projects, the defendants brought motions to strike the plaintiffs' statements of claim.

The court struck out the claims against the individual directors and officers of the corporate defendants without leave to amend, finding that the pleadings failed to allege any independent tortious conduct or separate identity of interest from the corporations.

The statements of claim against the remaining defendants were struck out in their entirety with leave to deliver fresh as amended statements of claim.

This motion concerned the approval of fees and conduct of Ernst & Young Inc. (EY), a court-appointed expert, and its counsel, Norton Rose Fulbright Canada LLP, after the underlying dispute between the plaintiffs and defendants settled.

The defendants challenged the substantial fees, alleging EY's mandate was impossible, it made false statements, was careless, and biased.

The court applied the test for reviewing receiver's fees, finding that the defendants' persistent lack of cooperation significantly increased the complexity and cost of EY's investigative work.

The court dismissed all defendant complaints, approved EY's conduct and fees, and awarded EY full indemnity costs for the motion due to the defendants' unsubstantiated allegations of misconduct.