The plaintiff, 1806700 Ontario Inc., initiated an action in Newmarket alleging fraud related to a third mortgage, seeking damages for litigation costs incurred in prior Brampton and Toronto proceedings.
The Khan defendants and Hameed defendants brought motions to strike the plaintiff's statement of claim.
The plaintiff cross-moved to amend its claim.
The court found the claim against the Hameed defendants was an impermissible collateral attack on previous costs rulings and barred by absolute privilege, striking it without leave.
The claim against the Khan defendants also suffered from these defects, but the court granted leave to amend due to the Khan defendants having put the third mortgage's validity in issue in a separate Toronto action.
The court also ordered the Newmarket and Toronto actions transferred to Oshawa due to improper commencement location and stayed the Newmarket action pending the final determination of the Brampton proceedings, emphasizing the need to avoid multiplicity of proceedings.
