Nature of Litigation: Ongoing dispute since 2010 involving WestJet’s claim and ELS’ counterclaim.
Key Issues:
- WestJet sought dismissal of ELS' counterclaim due to inordinate and inexcusable delay (Rule 4.31) and/or non-compliance in producing documents (Rule 3.68(4)).
- ELS countered with a request for a litigation plan to proceed to trial.
Court's Analysis:
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Rule 4.31 (Delay):
- The Court assessed whether the delay was inordinate, inexcusable, and resulted in significant prejudice.
- ELS’ counterclaim was reinstated in 2014 after an appeal, but numerous delays followed, including failure to produce documents, adjournments, and changes in counsel.
- The Court found inordinate delay spanning over a decade, with minimal progress towards trial readiness.
- ELS’ reasons (procedural disputes, change of counsel, and COVID-19 impact) did not justify the extensive delays.
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Prejudice to WestJet:
- The delay led to potential loss of relevant evidence and fading witness memories, making it difficult for WestJet to defend against ELS’ $52 million damages claim.
- The presumption of significant prejudice due to inordinate delay was not rebutted by ELS.
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Outcome:
- The Court dismissed ELS' counterclaim under Rule 4.31 due to prolonged, unjustifiable delays.
- ELS’ application for a litigation plan was denied as moot.
Conclusion: WestJet succeeded in having the counterclaim dismissed. The Court emphasized the detrimental impact of litigation delays on the parties and the legal system. WestJet was awarded costs, with a provision for written submissions on costs if the parties could not agree. No specific amount was provided.