CIVIL PROCEDURE - Lis pendens (certificate of pending litigation) - Vacating of

Law360 Canada ( March 13, 2018, 8:41 AM EDT) -- Appeal by Sun Wave and CGR from the dismissal of their claims against Xu et al for want of prosecution, and from the cancellation of certain certificates of pending litigation (CPL). Sun Wave and CGR alleged that they hired Xu to manage and obtain permits to purchase a pulp mill, and that Xu, her family and her companies engaged in the torts of conspiracy, fraud and misappropriation in the course of this endeavour. Xu alleged that the pulp mill transaction itself was a fraud, undertaken to inflate the mill’s value on a security document to obtain a loan. Xu counterclaimed for damages for wrongful dismissal. Sun Wave and CGR filed their claim on May 15, 2008, while Xu filed her defence and counterclaim on July 9, 2008. Sun Wave and CGR filed CPLs against several of Xu’s properties. Xu applied in September 2015 to have the CPLs cancelled, because no steps had been taken in the litigation for one year. The application was adjourned based on affidavit evidence from Ni, the principal of Sun Wave and CGR, to the effect that he had been detained in China since 2012 but had since returned to BC. Since September 2015, Ni had been refused admission to Canada. The judge dismissed the claim because the delay in prosecuting it had been inordinate, because Sun Wave and CGR provided no reason for failing to move the litigation along since 2015, and because the delay was causing prejudice to Xu....
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