Canada: Cautious Use of Rule 2.1 Against Vexatious Claims in Khan v. Krylov & Company LLP

In the recent case Khan v. Krylov & Company, 2017 ONCA 625 ("Khan"), the Ontario Court of Appeal revisited the principles to be considered by a Court when exercising its authority pursuant to Rule 2.1.01 of the Rules of Civil Procedure to stay or dismiss an action that is found to be patently frivolous, vexatious or an abuse of process, reaffirming that such relief will be granted only in the clearest of cases.

In Khan, the plaintiff commenced an action (the "fraud action") against two law firms: the firm that had represented him in an earlier motor vehicle action (the "motor vehicle action") and the firm that represented the defendant in that action. In the fraud action, the plaintiff alleged that he was told by his law firm that the motor vehicle action settled for $82,500 all-inclusive (of which the plaintiff received $58,137.95), but he believed the action had actually settled for an amount in the range of $800,000, based on assertions that had been made to him by an associate from the law firm. The plaintiff alleged that the two law firms defrauded him and misappropriated the additional settlement funds. The defendant law firms sought a dismissal of the claim pursuant to Rule 2.1. The motion judge found that the Statement of Claim provided no particulars of the alleged breaches of fiduciary duty, negligence, fraud, misappropriation or dishonesty and dismissed the fraud action as being frivolous, vexatious or otherwise an abuse of the process of the Court. The plaintiff appealed to the Court of Appeal.

In allowing the appeal, the Court of Appeal noted that "the law concerning rule 2.1 is new and evolving," stating:

[12] Rule 2.1 is an extremely blunt instrument. It is reserved for the clearest of cases, where the hallmarks of frivolous, vexatious, or abusive litigation are plainly evident on the face of the pleading. Rule 2.1 is not meant to be an easily accessible alternative to a pleadings motion, a motion for summary judgment, or a trial.

The Court of Appeal found that the Statement of Claim in the fraud action bore none of the characteristics of a vexatious pleading that would be amenable to being struck under Rule 2.1, as summarized by the Court in Gao v. Ontario (Workplace Safety and Insurance Board), 2014 ONSC 6497 ("Gao"):

  • bringing multiple proceedings to try to re-determine an issue that has already been determined by a court of competent jurisdiction;
  • rolling forward grounds and issues from prior proceedings to repeat and supplement them in later proceedings, including bringing proceedings against counsel involved in those earlier proceedings;
  • persistent pursuit of unsuccessful appeals;
  • failure to pay costs awards of prior proceedings;
  • bringing proceedings for a purpose other than the assertion of legitimate rights, including to harass or oppress others; and
  • bringing proceedings where no reasonable person would expect to obtain the relief sought.

The Court in Gao also noted that many vexatious pleadings are obvious on their face as they bear "unmistakable hallmarks of querulous litigant behaviour" including curious formatting, odd or irrelevant attachments, rambling discourse and multiple methods of emphasis such as colour highlighting, repeated punctuation and capitalization.

In Khan, the Court of Appeal concluded that, when read generously, in effect the pleading alleged that the law firms conspired to defraud the plaintiff as they settled the motor vehicle action for more than the plaintiff had been told and the firms pocketed the difference. The Court of Appeal stated, "as distasteful as this allegation might be, it is not entirely implausible." The Court of Appeal found that the pleading bore none of the hallmarks described in Gao, there was nothing on the face of the claim that indicated the plaintiff was a vexatious litigant or one that engaged in "querulous litigant behaviour," nor was there any suggestion that the plaintiff would abuse the process of the Court if confronted with a motion for summary judgment.

The decision in Khan reaffirms that the Court will exercise its authority to dismiss a claim under Rule 2.1 cautiously and sparingly, only in the clearest of cases where the vexatious, abusive nature is apparent on the face of the pleading and it is appropriate to rely on the "attenuated process" set out in the Rule. The Court will not permit the use of Rule 2.1 as a means for defendants to avoid undoubtedly more costly and complex pleadings motions, motions for summary judgment or trial.

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions