The defendants brought a motion to strike the Statement of Claim under Rule 21.01(1)(b) of the Rules of Civil Procedure, arguing that it disclosed no reasonable cause of action against them.
The plaintiff had loaned $50,000 to Yntegrity Sales & Marketing Inc. (YSM) via promissory note, which defaulted twice.
The plaintiff sued YSM and three other defendants (Hyung Cho, Renee Chang, and Mind Over Marketing Inc.) on various grounds including unjust enrichment, bad faith, fraudulent misrepresentation, improper diversion of funds, piercing the corporate veil, and breach of personal guarantees.
The court granted the motion in part, striking certain claims without leave to amend (bad faith and breach of personal guarantees) and others with leave to amend (unjust enrichment, fraudulent misrepresentation, improper diversion, and claims against MOMI).
The court did not strike claims for punitive damages or opportunity costs damages.
