The defendants brought a cross-motion under Rule 21.01(3)(b) of the Rules of Civil Procedure, seeking to dismiss the plaintiffs' action on the grounds that the plaintiffs lacked legal capacity to commence or continue the action.
The defendants argued that the loan funds were not advanced by Scott Dorey, that the Dorey Capital Family Trust (DCFT) had conveyed its rights to the funds to other entities, and that Ora Trustees Limited had not proven its trusteeship.
The plaintiffs disputed these claims, asserting that Scott Dorey was a proper party, that no valid transfer of receivables occurred, or that they were transferred back to DCFT, and provided evidence of Ora's trusteeship.
The court applied the "plain and obvious" test for Rule 21 motions, noting that such motions are not for resolving serious factual disputes or credibility issues.
Given the numerous disputed facts and credibility determinations required regarding the alleged transfers of the loan receivable and the chain of trusteeship, the court dismissed the defendants' motion.