The Third Party Defendant, His Majesty the King in Right of Ontario, brought a Rule 21.01 motion to strike a third-party claim by 1458875 Ontario Corporation O/A Yorktown Motors.
Yorktown alleged negligence against Ontario for issuing fraudulent vehicle permits and Used Vehicle Information Packages (UVIPs) for a non-existent vehicle, which Yorktown relied upon in a financing transaction.
The court found that the claim was barred by section 11(2) of the Crown Liability and Proceedings Act, 2019, as the issuance of a vehicle permit constitutes a regulatory decision.
Alternatively, the court found it plain and obvious that no private law duty of care existed between Ontario and Yorktown, as the relevant legislation did not create such a duty, and there was no sufficient proximity or policy reason to establish a new duty.
The motion to strike was granted.