CIVIL PROCEDURE - Pleadings - Failure to disclose a cause of action or defence

Law360 Canada ( October 24, 2023, 6:19 AM EDT) -- Application by defendant Province to strike plaintiffs’ civil claim for failing to disclose a reasonable cause of action. The plaintiffs filed a civil claim to declare the defendant Province committed torts of negligence and negligent misrepresentation. The plaintiffs were a group of licensed cannabis retailers in British Columbia while the defendant was His Majesty the King in Right of the Province of British Columbia (the “Province”). The plaintiffs alleged that the defendant Province failed to adequately enforce the licensing requirements under the Cannabis Control and Licensing Act (“CCLA”) to shut down retail cannabis locations that operated on Indigenous Reserves which resulted in damages of at least $40 million in losses. The plaintiffs also alleged that the defendant Province made representations that it would ensure a viable retail cannabis industry in British Columbia by ensuring that the Community Safety Unit (“CSU”) would take enforcement action against unlicensed retailers on Indigenous Reserves. The plaintiffs asserted that the Province’s representations amounted to an undertaking to protect the interests of current and prospective licensed cannabis retailers. The defendant Province alleged that it did not owe the plaintiffs a private law duty of care to ensure they did not lose profits while they competed with unlicensed cannabis retailers that operated on Indigenous Reserves since there was no relationship of proximity between the parties. The defendant Province applied to strike the plaintiffs’ notice of civil claim for failing to disclose a reasonable cause of action....
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