Background: Kimberly King Yi Wai, the plaintiff, invested funds intended for a childcare business. She alleged that the defendants, Karen Elizabeth Lau Chung and Anthony Man Kit Yim, misappropriated these funds to purchase real estate for their own benefit. Ms. Wai claimed fraud, conspiracy, and unjust enrichment against the defendants.

Legal Arguments/Issues: The defendants moved to strike Mr. Yim from the case, arguing that the plaintiff’s notice of civil claim did not disclose a reasonable cause of action against him. They also successfully applied to cancel a certificate of pending litigation (CPL) registered against their real estate, as the connection between the plaintiff’s funds and the property was deemed vague and imprecise by Justice D. MacDonald in a prior decision.

Held: Justice Brongers ruled that the plaintiff's claim sufficiently outlined a reasonable cause of action against both defendants, thus rejecting the application to remove Mr. Yim from the litigation. While the court acknowledged that the plaintiff’s pleadings regarding the use of funds could be more precise, they were deemed adequate for the current stage of proceedings. The test for canceling a CPL was noted to differ from that of a motion to strike.

Costs/Damages Awarded: No specific costs or damages were awarded at this stage. The court ordered that costs be in the cause, meaning they would be determined at the conclusion of the litigation. The case was allowed to proceed with both defendants remaining as parties.