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ARTICLE · 28 AUGUST 2019

Ulterior Motive? The Court Probably Doesn't Care (And May Order Costs)

Litigants (and their lawyers) often develop theories regarding a party's underlying motivation in a legal dispute.

CanadaLitigation, Mediation & Arbitration

Litigants (and their lawyers) often develop theories regarding a party's underlying motivation in a legal dispute. While these theories sometimes provide useful insight into a party's strategy or settlement position, such theories are, as a general rule, best left out of the pleadings. Pleading ulterior motive may lead to a costly motion to strike.

This is illustrated in a recent decision of the Court of Appeal for Ontario, in which the Court confirmed that a plaintiff's motive in bringing an action, even if improper, does not in itself provide a defence to an action and is therefore generally irrelevant. In Huachangda Canada Holdings Inc. v. Solcz Group Inc.,1 Hoy A.C.J.O., Trotter and Jamal JJ.A. upheld the decision of Penny J. of the Ontario Superior Court of Justice striking out two paragraphs in the appellant's statement of defence, without leave to amend. In the paragraphs at issue, the appellant pleaded that the respondents' ulterior motive in bringing the

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