Richards Packaging Inc. v. Distrimedic Inc.

Richards Packaging Inc. v. Distrimedic Inc.

The Court allowed Richards’ appeal, holding the prothonotary erred in invalidating the C‑CEO designations: a third‑party proprietary legend does not preclude C‑CEO protection where the documents were developed for, treated as confidential by, and would cause serious competitive prejudice to the producing party; Document 91’s granular unit sales data similarly posed a real risk of competitive prejudice and justified C‑CEO protection; Distrimedic’s cross‑motion was dismissed.

Citation
2020 FC 1161
Parties
Plaintiff / Defendant by Counterclaim: Richards Packaging Inc.; Defendant / Plaintiff by Counterclaim: Distrimedic Inc.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
17 December 2020
Procedural Posture
Patent Infringement; Confidentiality Dispute / Appeal From Prothonotary Order (motion Under Federal Courts Rules, Rule 51(1))
Outcome
Appeal allowed in part; cross‑appeal dismissed; C‑CEO designations for Documents 23.3, 23.4, 23.5 and 91 validated; transcript percentage estimates designated as CI; costs awarded to Plaintiff.
Legal Topics
C CEO Designations, Protective Orders, Discovery and Confidentiality Agreements, Standard of Review, Empty‑head Principle
Source Language
English
Intellectual Property Civil Procedure Confidentiality/protective Orders Commercial/competition Law C CEO Designations Protective Orders Discovery and Confidentiality Agreements Standard of Review +1 more

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Parties

Richards Packaging Inc.

Plaintiff / Defendant by Counterclaim

Distrimedic Inc.

Defendant / Plaintiff by Counterclaim

Procedural Posture

Patent Infringement; Confidentiality Dispute / Appeal From Prothonotary Order (motion Under Federal Courts Rules, Rule 51(1))

Legal Issues

  1. 1 Whether C-CEO designations for Documents 23.3, 23.4, 23.5 and 91 should be validated under the Confidentiality Agreement
  2. 2 Whether third‑party proprietary legend precludes C-CEO designation when documents were produced for the producing party
  3. 3 Whether Document 91’s sales data creates a serious, real and substantial risk of competitive prejudice

Ratio Decidendi

The Court allowed Richards’ appeal, holding the prothonotary erred in invalidating the C‑CEO designations: a third‑party proprietary legend does not preclude C‑CEO protection where the documents were developed for, treated as confidential by, and would cause serious competitive prejudice to the producing party; Document 91’s granular unit sales data similarly posed a real risk of competitive prejudice and justified C‑CEO protection; Distrimedic’s cross‑motion was dismissed.

Court Disposition

Appeal allowed in part; cross‑appeal dismissed; C‑CEO designations for Documents 23.3, 23.4, 23.5 and 91 validated; transcript percentage estimates designated as CI; costs awarded to Plaintiff.

Orders

  • Paragraphs 5 and 7 of the Prothonotary Steele Order dated February 10, 2020 set aside.
  • Distrimedic’s cross-motion (request for de novo reconsideration) dismissed.