The Court struck out the statement of claim because the plaintiffs failed to identify in their pleading the source of the defendant's power under the Licence Agreement that they alleged was improperly exercised. Although the plaintiffs alleged breach of the Licence Agreement, the provisions they relied upon imposed obligations on the club rather than conferring or regulating any power on the defendant to impose penalties, and counsel ultimately conceded the Licence Agreement conferred no such power. The case illustrates the importance of a plaintiff precisely pleading the legal foundation for the authority allegedly misused, particularly where the defendant has shifted its own position on the jurisdictional basis for its actions.
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