The plaintiffs obtained an ex parte Anton Piller order to search and seize documents from the defendants' premises.
The order lacked a procedure for handling privileged documents.
During the search, electronic files containing privileged solicitor-client communications were seized and subsequently reviewed by the plaintiffs' counsel.
The defendants moved to disqualify the plaintiffs' solicitors.
The motions judge dismissed the motion, holding that the defendants had to prove pressing and substantial prejudice.
On appeal, the Divisional Court held this was an error of law; where relevant privileged documents are reviewed by opposing counsel, prejudice is assumed.
The appeal was allowed and the plaintiffs' solicitors were disqualified.