Natalie Marie Leon

The defendants brought a second motion to strike the plaintiff's re-amended statement of claim in an action arising from a Ponzi scheme.

The court found that the plaintiff had addressed the deficiencies identified in a previous decision regarding the damages claimed against most defendants.

However, the court struck the claim against two defendants (the McKillips) without leave to amend, finding no material facts were pleaded to establish a duty of care.

The court also held that the defendants were precluded from raising new arguments about the duty of care that they could have raised on their first motion to strike, as serial attacks on a pleading constitute an abuse of process.

The defendants sought over $300,000 in substantial indemnity costs following partial success on a motion to strike the plaintiff's pleadings.

The plaintiff, acting as trustee in bankruptcy for a company involved in a Ponzi scheme, opposed the costs request and argued that costs should be reserved.

The court declined to fix costs immediately, finding it more just to reserve the costs of the initial motions pending the outcome of further motions to strike the reamended statement of claim.

The defendants brought motions to strike the plaintiff's statement of claim, which sought contribution and indemnity, damages, and disgorgement arising from the defendants' alleged involvement in a Ponzi scheme operated by Golden Oaks.

The court struck the claims for contribution and indemnity without leave to amend, finding no common liability to third parties and no viable duty of care owed to the unsecured creditors.

The claims for damages were struck with leave to amend to properly plead the losses suffered by the company.

The claims for disgorgement and accounting were permitted to proceed.