M. Sammon

The defendant insurance broker brought a motion for security for costs against the plaintiff, a Delaware limited partnership with no assets in Ontario.

The plaintiff was seeking over $46 million in damages for denied coverage under a fidelity bond.

The court found that the plaintiff was a foreign resident, a nominal plaintiff, and had insufficient assets to satisfy a costs award.

Applying a holistic approach, the court ordered the plaintiff to post security for costs in the amount of $525,000.

In a wrongful dismissal action, the plaintiff amended their statement of claim against individual directors under s. 248 of the OBCA following a Court of Appeal decision.

The defendants brought a second motion to strike the amended claim, arguing it remained deficient.

At a case conference, the court determined it could not resolve the issue on a limited record and scheduled the defendants' motion to strike for a later date, while encouraging the parties to proceed with discovery and mediation.

The defendant employer in a wrongful dismissal action brought a motion under Rule 26.01 to amend its Statement of Defence and Counterclaim to plead after-acquired cause, alleging the plaintiff misled it regarding his involvement in a fraudulent hedge fund.

The plaintiff opposed, arguing the amendments were legally untenable because the employer knew of the allegations before termination.

The court granted the motion, finding the proposed amendments were legally tenable and the plaintiff failed to demonstrate non-compensable prejudice.

The court also ordered limited further discovery on the amendments but denied the plaintiff's request to examine a second corporate representative.