In a decision released today, Stockwoods partners Paul Le Vay, Sam Robinson, and Ted Marrocco succeeded in obtaining a permanent stay of proceedings terminating an $80 million claim against their clients in a complex commercial action. The case confirms that prejudice is presumed when a party comes into possession of an opponent’s privileged information. The plaintiffs were found to have come into possession of privileged information belonging to the defendants and were unable to rebut the presumption of prejudice that followed. In granting the defendants’ motion for a stay of proceedings, Justice Cavanagh held that to allow the plaintiffs’ action to proceed in the circumstances would be manifestly unfair to the defendants and would bring the administration of justice into disrepute.
