More on the New Rules of Court and Proportionality: Withdrawing Deemed Admissions

As previously discussed, the BC Supreme Court Rules permit parties to a lawsuit to ask the opposing side to make binding admissions through a “Notice to Admit”.  If the opposing side fails to respond to the Notice in the time lines required they are deemed to have made the sought admissions.  Once the admission is made it cannot be withdrawn except by consent of the parties or with the Court’s permission.  Reasons for judgement were released today by the BC Supreme Court, New Westminster Registry, considering the Court’s discretion to withdraw deemed admissions.
In today’s case (Piso v. Thompson) the Plaintiff was involved in a 2003 collision.  She sued for damages alleging longstanding injuries as a result of this crash.  In the course of the lawsuit ICBC’s lawyer served the Plaintiff with a Notice to Admit claiming that the Plaintiff was fully recovered within two years, that there was no claim for past wage loss nor a claim for diminished earning capacity.  The Plaintiff’s lawyer neglected to respond to the Notice in the timelines required resulting in the admissions being inadvertently made.  ICBC then brought an application for summary judgement.
The Plaintiff brought an application asking for permission to withdraw the admissions.  ICBC opposed arguing there would be no prejudice to the Plaintiff if she was faced with these admissions as she could sue her own lawyer in negligence to make up for any damages the unwanted admissions caused.  Master Caldwell rejected this argument and permitted the Plaintiff to withdraw the admissions.  The Court cited the principle of ‘proportionality‘ in reaching judgement.  Master Caldwell provided the following useful reasons:

[20]         Rule 7-7 provides a mechanism to streamline and make more efficient the litigation process. It rewards efficiency and encourages a focus on issues which matter and which are truly in dispute. It provides penalties and disincentives for failure to admit that which should properly be admitted by way of cost sanctions. It certainly provides for much more extreme outcomes in appropriate circumstances but it also provides for judicial discretion in excusing or relieving from such extreme outcomes in appropriate circumstances.

[21]         In my respectful view Rule 7-7 does not, nor was it intended to, create a trap or add an inescapable obstacle to ensnare or trip up sloppy or inattentive counsel to the detriment of the parties to the litigation.

[22]         The current Rule 1-3(a) continues the long-standing object of the rules:

The object of these Supreme Court Civil Rules is to secure the just, speedy and inexpensive determination of every proceeding on its merits.

[23]         There is no question in my mind that the failure in this case was a sloppy, inadvertent and possibly even negligent failure on the part of former counsel for the plaintiff. I am satisfied that the plaintiff himself cannot be faulted in any way for the oversight; he had neither actual notice of the document in question from his lawyer nor an opportunity to provide a reasoned and considered response.

[24]         The refusal of leave to withdraw these admissions will deny the plaintiff his opportunity to have his claim heard on the merits. The argument that the plaintiff can have his relief by way of a professional negligence claim against his former counsel fails to recognize the further delay and expense of such a claim. In the context of proportionality such an option does not seem appropriate from a financial or court resource prospective.

[25]         In my view this is precisely the type of situation which warrants an order allowing the withdrawal of a deemed admission while providing for the other party in costs and other accommodations.

[26]         The plaintiff is granted leave to withdraw the admissions.