Scannar Industries Inc. ( Receiver of ) v. Canada
T-494-89
Denault J.
16/11/93
10 pp.
Appeal under R. 336(5) from ASP's order granting leave to plaintiffs to file amended statement of claim -- Main action appeal by plaintiffs of notices of assessment for 1984 and 1985 taxation years -- Principal issue in original statement of claim whether plaintiffs entitled to Part VIII refund as number of expenditures scientific research and experimental development expenditures under Income Tax Act, ss. 37(1), 194(2) -- Principal amendments raising validity of designations made under s. 194(4) -- ASP allowing application for leave to amend statement of claim without reasons -- Standard of review of prothonotary's order set out in Canada v. Aqua-Gem Investments Ltd., [1993] 2 F.C. 425 (C.A.) -- ASP's order raising question "vital to the final issue of the case" -- Court ought to intervene and exercise discretion de novo as amendments, if allowed, would create whole new cause of action -- Rule governing amendment of pleadings set out in R. 420(1)[cad 211]Whether amendment in interests of justice -- Proposed amendments constituting withdrawal of admission designations considered by plaintiffs to be valid -- Amendments would cause prejudice to defendants as Minister precluded from reassessing third party investors-Proposed amendments not aiding in "determining the real questions in controversy between the parties" nor raising "triable issue" -- Counsel for plaintiffs having previous opportunities for raising issue of validity of designations -- Motion by no means "timely" -- Proposed amendments regarding designations would cause irremediable injustice not capable of being compensated by award of costs -- Appeal allowed -- Federal Court Rules, C.R.C., c. 663, RR. 336, 420 -- Income Tax Act, S.C. 1970-71-72, c. 63, ss. 37(1) (as am. by S.C. 1986, c. 6, s. 15(3)), 194 (as am. idem).