The Defendants operated a fitness centre on premises leased from the Plaintiff. As a result of the COVID-19 pandemic, public health orders mandated the closure of the fitness centre. The Defendants brought a Third Party Claim against His Majesty the King in Right of Alberta (“HMTK”) and Alberta Health Services (“AHS”) for financial losses arising from the issuance of the public health orders (the “3P Claim”).

HMTK and AHS applied for Summary Dismissal of the 3P Claim and to strike the Action. Both Applications were successful.

Rule 3.68(2)(b) allows the Court to strike a claim where the pleading fails to establish a reasonable basis for the claim. The Court struck the 3P Claim because it did not disclose a cause of action against HMTK or AHS that could withstand scrutiny. While the Defendants were able to establish that the public health orders negatively impacted their business, they failed to explain why or how HMTK or AHS should be liable for that impact.

Having already ruled that the 3P Claim should be struck, the Court nonetheless undertook an analysis of whether the 3P Claim could be summarily dismissed under Rule 7.3(1)(b). There was no evidence of misfeasance or bad faith in the enforcement of the public health orders by AHS and, as such, the 3P Claim was summarily dismissed.