Ontario Severance

S. v. Ellis Entertainment Corp.

2012 ONCA 362 (CanLII)Court of Appeal for OntarioDecided Wrongful dismissal

S. v. Ellis Ent.: Counterclaim After Defence Struck

Summary

This was an appeal to the Court of Appeal from an order of a motion judge. The employee sued the corporation and its director for wrongful dismissal, and the corporation counterclaimed for wrongdoing. After the corporation became insolvent, its counterclaim was assigned to the director, and its statement of defence was later struck out for failing to attend discovery. The motion judge ruled that because the corporation was deemed to admit the wrongful dismissal when its defence was struck, the director could not amend his pleadings to pursue the counterclaim, which was based on the same allegations as the struck defence. The Court of Appeal agreed and dismissed the director's appeal.

Outcome

appeal dismissed

Key Factors

  • assignment of counterclaim
  • striking out statement of defence
  • deemed admissions
  • amendment of pleadings
  • abuse of process

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This summary was written by AI from the published decision and its headnote. It is not an official version of the decision; read the full text on CanLII before relying on it. This is legal information, not legal advice. Ontario Severance is an educational tool. If you are facing a serious employment law matter, consult with a qualified employment lawyer in Ontario.