NWG Investments Inc. appealed the Superior Court of Justice’s decision, which dismissed its 2014 action for delay.
The claims were based on allegations that Mark O'Dea, a former officer of Fronteer Gold Inc., misrepresented the feasibility of extracting uranium in Nunatsiavut (Labrador) during 2007-2008.
The initial lawsuit was filed in New York and dismissed in 2013, after which NWG filed in Ontario in 2014.
Motion Judge’s Findings
Delay: The motion judge found NWG's delay inordinate and inexcusable.
Prejudice: The delay prejudiced the respondents, creating a substantial risk that a fair trial would not be possible.
Key facts:
Events occurred in 2007-2008.
Ontario action commenced in 2014, with pleadings closed by 2015.
No discoveries were conducted, and the last significant step was in 2015.
Appeal Arguments and Court’s Decision
Prejudice Issue: NWG argued the motion judge erred in assessing prejudice. The appellate court disagreed, affirming the judge's conclusions about document availability, witness relevance, and memory reliability.
Delay Impact: NWG's argument that the decision encouraged defendants to “lie in the weeds” was rejected. The court emphasized NWG’s responsibility to expedite its case.
Reasonableness: The court found the motion judge’s decision reasonable and free of palpable and overriding error.
