The plaintiffs brought a motion to amend their statement of claim to add allegations that the defendants’ litigation conduct, including alleged delay in producing privileged documents, constituted a breach of fiduciary duty and warranted punitive damages.
The court applied Rule 26.01 of the Rules of Civil Procedure and the test for allowing amendments, including whether the proposed claims were tenable at law.
The court held that no fiduciary duty exists between opposing parties during the conduct of litigation in the adversarial system and that litigation conduct alone cannot constitute an independent actionable wrong supporting punitive damages.
Alleged delay in document production is addressed through costs, not substantive claims.
The proposed amendments were therefore not legally tenable and were refused, though certain limited trial questions concerning knowledge of competing intellectual property claims were permitted.