Beyond the Rack Enterprises v. Michael Kors et al.

The Federal Court of Appeal (FCA) upheld the decision of the trial judge dismissing a motion brought by Beyond the Rack to strike paragraphs from Michael Kors’ Statement of Claim. The trial decision can be found here and our summary of it can be found here.

The FCA held that the trial judge had applied a de novo standard of review and agreed with the Prothonotary’s decision not to strike the impugned paragraphs.  Furthermore, the FCA upheld the Judge’s decision that there was no abuse of process in the impugned paragraphs as they did not lack an evidential basis. The FCA held that there was a heavy burden borne by a party seeking to strike a claim prior to discovery. Thus the Appeal was dismissed.