The appellant appealed a Master's order that dismissed its action for delay under Rule 11.03 of the Rules of Civil Procedure.
The Master had found that the appellant intentionally delayed obtaining an order to continue following a corporate reorganization to insulate its assets from the respondent's counterclaim.
The Divisional Court allowed the appeal in part, finding that the Master misapprehended the evidence and erred in applying the test for dismissal.
The Court held that a dismissal under Rule 11.03 requires a showing of prejudice related to the failure to obtain the order to continue, which the respondent failed to demonstrate.
The dismissal of the action was set aside, though the Master's refusal to vary the flawed 2015 order to continue was upheld, with leave for the appellant to requisition a fresh order.