The plaintiff bank brought actions for judgment on mortgages and to declare a property transfer a fraudulent conveyance.
The defendant counterclaimed for abuse of process, intentional infliction of mental suffering, and breach of fiduciary duty, alleging the bank was piling on claims to pressure her into settling the first mortgage claim despite her serious illness.
The bank's motion to strike the counterclaim was initially dismissed.
On appeal, the Divisional Court struck the claims for abuse of process and intentional infliction of mental suffering, finding the defendant failed to plead a collateral purpose or an act outside the action.
The court held that the bank's delay in bringing the motion did not prevent striking a pleading that was a nullity in law.
The claim for breach of fiduciary duty was allowed to stand.