What is the test for dismissing an action under the Rules of Civil Procedure?

The clear policy thrust of the Rules of Civil Procedure is that cases are to be tried on their merits. But there are countervailing policy thrusts that can lead to the earlier dismissal of an action. One of them, on which the defendants rely strongly, is the need to ensure compliance with orders made under the Rules. Among the stronger statements of this principle are the following. In Vacca v. Banks (2005), 6 C.P.C. (6th) 22, [2005] O.J. No. 147 (Div. Ct.), Ferrier J. said at para. 27: 27 There comes a time when this court is obliged to meet its responsibility for the effective administration of justice through case management by dismissing an action. Such is the case when the plaintiff repeatedly fails to comply with orders of the court whether or not there has been prejudice to the defendants.