Pacific Lake Yacht Society v. Nimco Biosystems Inc.
T-96-95
Hargrave P.
26/1/95
6 pp.
Statements of claim as scandalous, frivolous or vexatious -- Members of plaintiff ordering ten 57-foot houseboats from defendant -- Director of plaintiff also director, officer, shareholder of builder, and owner of agency selling time shares -- Builder claiming to have delivered three vessels -- Following change of executive, plaintiff discovering paid for three vessels, but had received only two -- Third vessel, on builder's assembly line, about to disappear over border to American buyer -- Plaintiff, as recorded owner and mortgagor arresting vessel based on newly discovered contract signed on its behalf by director with many hats -- Agreement, conditional sales contract, providing Society obtaining no title to vessels until all ten paid for -- Defendant alleging statements of claim scandalous, frivolous, vexatious, abuse of process based on affidavit of President of Society deposing Society believing conditional sales agreement invalid or void, and not reflecting actual contract -- To strike out pleadings as disclosing no reasonable cause of action under R. 419(1)(a) must be plain, obvious and beyond doubt -- Test under R. 419(1)(c), (f) as or more stringent than test under R. 419(1)(a) -- Must be obvious plaintiff's action so clearly futile not slightest chance of succeeding -- In first action plaintiff pleading agreement which in subsequent affidavit denied as void or invalid -- Motion to strike out first action, T-96-95, and to release vessel from arrest in that action granted -- In second action facts surrounding contract between Society and builder may be best known to director with many hats, raising question of policy, fairness since appears Builder knows more about facts surrounding contract than do present directors, members of Society -- Motion to strike second action denied -- Federal Court Rules, C.R.C., c. 663, R. 419(1).