The defendants brought a motion under Rules 21.01(1)(b) and 25.06 of the Rules of Civil Procedure seeking to strike portions of the statement of claim, including claims against an individual corporate officer and a claim for oppression under the Canada Business Corporations Act.
The action alleged that a former corporate partner withdrew from a partnership while its share capital account reflected a negative balance arising from partnership drawings, resulting in claims for breach of fiduciary duty, unjust enrichment, conversion, and oppression.
The court applied the stringent “plain and obvious” test for striking pleadings and held that the claims for breach of fiduciary duty and unjust enrichment disclosed reasonable causes of action and should proceed.
However, the oppression remedy claim lacked sufficient material facts and was struck with leave to amend.
Certain paragraphs referencing settlement discussions were also struck as subject to settlement privilege.