What if a party needs more documents to decide whether to kick off litigation? 

UCPR 5.3 can assist.  

Here, we have a sale of a restaurant and grocery business to the plaintiff.  Prior to the sale the plaintiff was given payroll reports, staff rosters, and P&Ls. 

Each defendant gave representations about the accuracy of that info: [4].  The plaintiff said turnover following the sale was substantially less, and payroll was substantially more, than the info suggested. 

The plaintiff said it might be inferred that revenue was overstated and staff underpaid: [5]  So the plaintiff sought material to help it decide whether to commence proceedings.  

The Court worked through the UCPR 5.3 issues to determine the documents sought were “reasonably necessary” to decide whether to commence proceedings.  

The plaintiff sought discovery of documents including documents relating to a food truck business not subject to the sale. This part of the application was rejected. 

The balance, regarding employee and financial data, was allowed leaving the plaintiff in a position to consider where it should commence its claim.  

Costs followed the event.