The defendants brought a motion under Rule 21 of the Rules of Civil Procedure to strike the claim against an individual insurance broker employee on the basis that it disclosed no reasonable cause of action and was frivolous, vexatious, or an abuse of process.
The plaintiff alleged a longstanding relationship with the broker spanning 11 years, with annual consultations and reliance on the broker as its agent in obtaining and renewing insurance coverage.
The moving parties argued that the broker owed no individual duty of care because he acted within the scope of his employment and any liability would be vicarious.
The court held that Canadian negligence law does not impose a blanket rule preventing employees from owing duties of care to customers of their employer and that such questions depend on the specific factual circumstances.
Given the pleaded longstanding advisory relationship, the claim against the broker had a reasonable prospect of success and could not be struck at the pleadings stage.