At a contested status hearing, the defendant sought dismissal of the plaintiff’s action for delay.
The action alleged breach of contract and negligence arising from the defendant’s failure to publish advertisements in telephone directories.
Applying the test from appellate authority, the court considered whether the plaintiff provided an acceptable explanation for the delay and whether the defendant would suffer non‑compensable prejudice if the action proceeded.
The court held that explanations including lack of communication from defence counsel, internal file management failures, and the absence of an external client were not reasonable explanations for over two years of inactivity.
As the plaintiff failed to provide an acceptable explanation for the litigation delay and did not fully establish absence of prejudice, the action was dismissed.