R. Linton

The Plaintiff, Falcon Lumber Limited, sought to strike the pleadings of the Lotey Defendants due to their persistent and deliberate failure to comply with numerous court orders for document production and examinations for discovery over a three-year period.

The Lotey Defendants engaged in a "corporate shell game" involving undisclosed security agreements, receivership, and asset transfers to new companies controlled by Mr. Lotey, all while obstructing discovery.

The court found the defendants' conduct to be contumelious, demonstrating a flagrant disregard for the Rules of Civil Procedure and judicial orders.

Consequently, the court struck the Lotey Defendants' pleadings without leave to amend, noted them in default, and allowed the Plaintiff to obtain default judgment.

Additionally, the court awarded full indemnity costs of the motion against the Lotey Defendants' counsel personally, finding counsel complicit in the deliberate delay and obstruction of justice.

The plaintiff brought a motion to compel the defendant to re-attend cross-examination to answer refusals.

The court reviewed the refused questions in the context of the plaintiff's claims of unjust enrichment and piercing the corporate veil.

The court ordered the defendant to answer questions relating to his personal financial affairs, his financial relationship with the corporate defendant, and document retention, but declined to order answers to questions seeking legal conclusions or settlement positions.

As success was mixed, no costs were awarded.

The plaintiff, Falcon Lumber Limited, brought a motion seeking an order for full disclosure of business, corporate, and financial records from defendants GN Trim and Doors Ltd. and Surinder P. Lotey.

The plaintiff alleged unjust enrichment and sought to pierce the corporate veil, arguing the documents were relevant to determine why payment for goods was withheld and the financial relationships between the defendants.

The defendants argued the documents were irrelevant to a simple collection case.

The court found the documents relevant to the issues of unjust enrichment and piercing the corporate veil, given the allegations of collusion and the circumstances surrounding the cessation of GN Trim's operations and a cancelled asset sale.

The motion for disclosure was granted.