Friday, May 29, 2009

What if damages in simplified case grow exceed $50,000.00

Where is a case starts under mandatory simplified procedure as damages were, at the issuance of the claim within the mandatory limit, and the damages increase to beyond that limit, ought the defendant to be able to amend and object?

The issue arose in yesterday's unreported decision of  Dixie Lee Food Ltd. v, Dixie Lee of Canada (Newmarket). 

Justice Herman was considering a lease claim where the amounts unpaid started at under $50,000 when the claim was issued but were, by the time of a motion for summary judgment, over that amount.  The claim went to summary judgment under the simplified procedure where the rule for summary judgment differs markedly from that under the ordinary procedure.

In reply to the motion for judgment the defendant sought to amend and object to the simplified procedure. (The motion was brought without notice and was apparently argued "on the fly" -- not the best way for new law to be made).

The Court allowed the amendment and adjourned the motion for judgment to be dealt with under the ordinary process.The case may go to appeal (I was not counsel).

Arguably the Court should take the case as it is when presented. For now, however, this narrow but important point is as ruled
James Morton
1100-5255 Yonge Street
Toronto, Ontario
M2N 6P4

416 225 2777

1 comment:

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