Overview:
The case involved Ernst & Young Inc. (EYI) appealing a decision validating service of an amended statement of claim under Rule 12-1 of the Saskatchewan King’s Bench Rules. The claim alleged EYI’s negligence in auditing PrimeWest Mortgage Investment Corporation from 2014–2016, though EYI denied involvement in the audits.

Key Legal Issues:

• Validation of Service: EYI argued Rule 12-1 required irregular service attempts, which did not occur, and noted it was not connected to the audits.

• Mere Notice vs. Service: EYI contended that possession of the claim, obtained through unrelated proceedings, did not meet the requirements for service validation.

• Prejudice and Delay: EYI cited prejudice due to lost records, employee departures, and the 2.5-year delay.

Court's Decision:
The Court of Appeal allowed the appeal, finding the Chambers judge erred by validating service despite no service attempts or evidence justifying delay. EYI’s arguments regarding improper notice and procedural requirements were upheld.

Disposition and Costs:
The Court set aside the service validation and remitted the case to the King’s Bench to determine whether an extension or electronic service was appropriate. EYI was awarded costs for the appeal and leave application, calculated per standard rules. The exact monetary amount was not specified.