The appellant employer sought to amend its statement of defence to add a counterclaim against the respondent, alleging that the respondent's lawsuit against a former employee constituted intentional interference with economic relations and induced a breach of contract.
The Associate Justice dismissed the motion, finding the proposed claims untenable in law because commencing a civil action is not an unlawful act.
On appeal, the appellant raised a new argument based on the tort of abuse of civil process.
The Divisional Court dismissed the appeal, holding that new arguments should generally not be raised on appeal and that, in any event, the proposed counterclaim did not meet the test for abuse of process.