The Plaintiff, Silverado, went into receivership, and its assets were sold to 1773907 Alberta Ltd. (“177”), causing the Action to be stayed pursuant to Rule 4.34. This Application was for a Court Order lifting the stay and substituting 177 as the Plaintiff in place of Silverado. The Defendants sought to have the Action struck as abuse of process, alleging that the assignment of the Action from Silverado to 177 was tainted by champerty and maintenance.

Romaine J. ordered that the stay be lifted and that 177 be substituted as the new Plaintiff, stating it was “clear that the cause of action has been transferred from Silverado to 1773907, and Silverado no longer has any right or interest in the litigation”. However, after a thorough review of the law on champerty and maintenance, Romaine J. struck the resulting claim by 177 as an abuse of process on the basis that the assignment of the Action was tainted by champerty and maintenance.