The defendants brought a motion for leave to amend their Statement of Defence to add a counterclaim alleging negligent misrepresentation, abuse of authority, and breach of procedural fairness against the Crown.
The plaintiff opposed the amendment on the basis that the proposed claims disclosed no reasonable cause of action, were statute‑barred under the Limitations Act, constituted a collateral attack on other proceedings, and were partly advanced on behalf of a deceased individual.
Applying Rule 26.01 of the Rules of Civil Procedure, the court held that amendments should be permitted unless non‑compensable prejudice would result and that the proposed claims arose from the same core factual nexus already pleaded.
The court found that the discoverability principle could apply and that any limitation defence should be determined at trial.
Leave was granted to amend the pleading to add the counterclaim, except for claims seeking aggravated, punitive, and exemplary damages.