Is a motion to add as parties to a personal injury action for personal injury costs granted?

Ontario, Canada


The following excerpt is from Landex Holdings Inc. v. Barclays Bank of Canada, 2006 CanLII 1191 (ON SC):

While this submission on the part of the moving parties is somewhat persuasive from a practical point of view, in my opinion it has the potential to raise many problems and is not the appropriate form of relief to grant. In my opinion, the decision in Fong v. Louie, [1999] O.J. No. 3655 is sound authority for the proposition that a person should not be brought into an action for the sole purpose of seeking to make him or her liable for costs. The persons sought here to be added as parties are creditors of the plaintiff corporation. Some are shareholders as well. In either capacity, they would not have a cause of action in the circumstances of this case as against the defendants. Their participation in the plaintiff is protected by limited liability. That protection should not be swept away by an order adding them as parties for the sole purpose of exposing them to liability for the costs of an action brought by the plaintiff. All creditors of a corporation potentially may benefit if that corporation is successful in a lawsuit. Surely that does not mean that all creditors of a corporation should be liable for costs of the action brought by the corporation, nor should they be added as parties for that purpose.

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