NCS Multistage Inc. v. Kobold Corporation

NCS Multistage Inc. v. Kobold Corporation

The appeal is dismissed. The Judge did not commit palpable and overriding error. The constructive trust amendment was properly denied because it was vague, lacked pleaded material facts showing an equitable obligation or specific proprietary claim and had no reasonable prospect of success; allowing it at the eve of trial would be untimely and prejudicial. The proposed expansions of the period of alleged infringement contradicted the pleadings and party conduct during discovery, risked prejudice and in part were statute-barred. The Judge properly declined to compel additional documents for the extended period given the context, timing and changed relief sought by NCS.

Citation
2021 FC 1395
Parties
Plaintiff/ Defendant by Counterclaim: NCS Multistage Inc.; Defendant/ Plaintiff by Counterclaim: Kobold Corporation; Defendant/ Plaintiff by Counterclaim: Kobold Completions Inc.; Defendant/ Plaintiff by Counterclaim: 2039974 Alberta Ltd.; Defendant/ Plaintiff by Counterclaim: Promac Industries Ltd.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
10 December 2021
Procedural Posture
Patent Infringement; Interlocutory Appeals of Case Management Orders / Appeal Under Rule 51 on the Eve of a Consolidated Trial (pre Trial)
Outcome
Appeal dismissed; Orders of the Prothonotary/Case Management Judge dated November 23, 2021 are affirmed.
Legal Topics
Amendment of Pleadings, Constructive Trust, Motion to Compel Affidavit of Documents, Limitation Period, Standard of Review (housen)
Source Language
English
Intellectual Property Patent Law Civil Procedure Equity Law Discovery Practice Amendment of Pleadings Constructive Trust Motion to Compel Affidavit of Documents +2 more

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Parties

NCS Multistage Inc.

Plaintiff/ Defendant by Counterclaim

Kobold Corporation

Defendant/ Plaintiff by Counterclaim

Kobold Completions Inc.

Defendant/ Plaintiff by Counterclaim

2039974 Alberta Ltd.

Defendant/ Plaintiff by Counterclaim

Promac Industries Ltd.

Defendant/ Plaintiff by Counterclaim

Procedural Posture

Patent Infringement; Interlocutory Appeals of Case Management Orders / Appeal Under Rule 51 on the Eve of a Consolidated Trial (pre Trial)

Legal Issues

  1. 1 What is the appropriate standard of review for the Rule 51 appeal?
  2. 2 Whether the Judge erred in refusing leave to amend to plead a constructive trust
  3. 3 Whether the Judge erred in refusing leave to expand the pleaded period of alleged infringement

Ratio Decidendi

The appeal is dismissed. The Judge did not commit palpable and overriding error. The constructive trust amendment was properly denied because it was vague, lacked pleaded material facts showing an equitable obligation or specific proprietary claim and had no reasonable prospect of success; allowing it at the eve of trial would be untimely and prejudicial. The proposed expansions of the period of alleged infringement contradicted the pleadings and party conduct during discovery, risked prejudice and in part were statute-barred. The Judge properly declined to compel additional documents for the extended period given the context, timing and changed relief sought by NCS.

Court Disposition

Appeal dismissed; Orders of the Prothonotary/Case Management Judge dated November 23, 2021 are affirmed.

Orders

  • Appeal dismissed
  • Orders of the Prothonotary/Case Management Judge Ring dated November 23, 2021 remain in place