The defendant Million Dollar Round Table (MDRT) brought a motion to strike the plaintiff's statement of claim against it for disclosing no reasonable cause of action, or alternatively, for dismissal due to delay.
The plaintiff alleged negligence against MDRT, a voluntary trade association, based on a fraudulent letter from a former member bearing the MDRT emblem.
The court found that the claim failed to plead sufficient material facts to establish a novel duty of care owed by MDRT to the plaintiff, particularly for pure economic loss.
Despite the defendant's delay in bringing the motion and having filed a statement of defence, the court granted the motion to strike without leave to amend, citing the futility of the claim, the plaintiff's inaction in advancing the case, and the principle of proportionality in simplified procedure actions.