Background

• Dispute Origin: Clara painted the Low Level Bridge in 2006 using Termarust Technologies' paint with a five-year warranty. Issues with paint defects arose by 2008. Edmonton requested warranty repairs in 2011, which Clara denied.
• Litigation Timeline:
  • Edmonton filed its claim in June 2013, served it in April 2014, and requested a defense in 2018.
  • Clara filed to strike the claim for delay in 2018, citing limitation periods and prejudice.
  • The lower court ruled for dismissal due to inordinate delay and prejudice.

Key Legal Issues

1. Rule 4.31 (Dismissal for Delay):

   • Courts may dismiss claims if delays cause significant prejudice, presumed where delay is "inordinate and inexcusable."
   • Evaluates overall delay, considering procedural inactivity and impacts on evidence.

2. Prejudice Assessment:

   • Loss of key witnesses and evidence due to delay.
   • Lack of litigation progress led to uncertainty about available evidence.

Court of Appeal Ruling

• Decision: Appeal dismissed; dismissal of action upheld.
• Reasoning:
  • The lower court correctly applied legal principles.
  • Edmonton's delay (five years for two expert reports with no other steps) was unreasonable.
  • Significant prejudice arose, including loss of witnesses and degraded evidence.
  • The chambers judge’s findings on prejudice were supported by the record.

Conclusion

• Delays that impede fairness and justice warrant dismissal. Procedural diligence is critical to avoid claims being struck under Rule 4.31.

Judgment did not specify any monetary awards.