Texas-Australia Power Inc v Clements

Texas-Australia Power Inc brought an action against several defendants, alleging that it had been induced by misrepresentations to lend money to a company that had no means of repaying it. The plaintiff claimed it had lost the money lent and any income that would have been made from that money. The defendants responded with a defence and counter-claim, which the plaintiff sought to have struck out in its entirety or in part under rule 171 of the Uniform Civil Procedure Rules (UCPR). The plaintiff argued that the pleading did not disclose a reasonable cause of action or would prejudice a fair trial.

The court was required to determine whether the defendants' defence and counter-claim should be struck out in its entirety or in part. This involved considering whether the pleading disclosed no reasonable cause of action or would prejudice a fair trial, as per rule 171 of the UCPR. The court had to examine the allegations in the pleading and determine whether they met the required standard.

After reviewing the pleading, the court found that certain paragraphs of the defence and counter-claim should be struck out because they did not disclose a reasonable cause of action or would prejudice a fair trial. Specifically, paragraphs 14, 16 through 21, 24, 31(e) through 31(i) and paragraphs 46 through 50 were struck out. The court also ordered that the plaintiff file and serve an amended statement of claim within twenty-eight days, and the defendants file and serve an amended defence and counter-claim within twenty-one days of the service of an amended statement of claim.