In what circumstances will a statement of claim be struck as disclosing no reasonable cause of action?

In January 2006, CIBC applied to have the statement of claim struck as disclosing no reasonable cause of action. Ross J. dismissed this application on the basis that, as she stated at para. 7 of her later reasons, it was not possible to determine whether the Rule in Foss v. Harbottle applied in the absence of evidence with respect to the law of Maryland. On May 10, 2006, CIBC applied under Rule 18A for a declaration that the action as pleaded violated the rule in Foss v. Harbottle and an order dismissing the action as against CIBC. It adduced the expert evidence of some Maryland attorneys concerning the nature of a Maryland REIT, and Everest did the same. I will review that evidence after examining the rule in Foss v. Harbottle, the exceptions thereto and its application in some modern Canadian cases. Foss v. Harbottle