The third party, Onward, moved to permanently stay the main action based on a release containing a no-claims-over clause that the plaintiff had signed in its favour.
The defendant, Enercare, had commenced a third-party claim against Onward for contribution and indemnity.
The court dismissed the motion, finding that the plaintiff had expressly waived its right to recover any damages attributable to Onward's fault in its amended statement of claim.
Applying the principle from Taylor v. Canada, the court held that this waiver eliminated any viable claim-over by Enercare against Onward, meaning the main action was not a prohibited proceeding under the release.