Tekna Plasma Systems Inc. v. AP&C Advanced Powders & Coatings Inc.

Tekna Plasma Systems Inc. v. AP&C Advanced Powders & Coatings Inc.

Apply a lump sum costs award using 33% of Tekna's adjusted recoverable fees to December 2021 and 66% thereafter pursuant to Rule 420 because Tekna's written offer met Rule 420 requirements and justified doubling; adjust the fee base to exclude proportional fees for patents discontinued without costs, deduct $60,000 for wasted Purdue testing and exclude post‑trial unrelated fees; reduce disbursements by $45,500 for testing and overlapping patent work; award recoverable taxes on proven payments; total award equals $2,926,000 with interest per article 1619 CCQ and release of $10,000 security plus interest.

Citation
2024 FC 1954
Parties
Plaintiff / Defendant by Counterclaim: Tekna Plasma Systems Inc.; Defendant / Plaintiff by Counterclaim: AP&C Advanced Powders & Coatings Inc.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
5 December 2024
Procedural Posture
Patent Infringement and Validity Litigation / Costs Determination Following Judgment After Trial
Outcome
AP&C Advanced Powders & Coatings Inc. ordered to pay Tekna Plasma Systems Inc. total costs of $2,926,000.
Legal Topics
Costs Assessment, Rule 420 Settlement Offers, Lump Sum Costs, Allocation of Recoverable Fees, Disbursements Adjustments, Recovery of Gst/qst
Source Language
English
Intellectual Property Patent Law Civil Procedure Tax Law (indirect Taxes) Costs Assessment Rule 420 Settlement Offers Lump Sum Costs Allocation of Recoverable Fees +2 more

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Parties

Tekna Plasma Systems Inc.

Plaintiff / Defendant by Counterclaim

AP&C Advanced Powders & Coatings Inc.

Defendant / Plaintiff by Counterclaim

Procedural Posture

Patent Infringement and Validity Litigation / Costs Determination Following Judgment After Trial

Legal Issues

  1. 1 Appropriate lump sum percentage to compensate successful party
  2. 2 Whether Rule 420 doubling applies to a lump sum costs award
  3. 3 Proper allocation of recoverable fees among multiple patents

Ratio Decidendi

Apply a lump sum costs award using 33% of Tekna's adjusted recoverable fees to December 2021 and 66% thereafter pursuant to Rule 420 because Tekna's written offer met Rule 420 requirements and justified doubling; adjust the fee base to exclude proportional fees for patents discontinued without costs, deduct $60,000 for wasted Purdue testing and exclude post‑trial unrelated fees; reduce disbursements by $45,500 for testing and overlapping patent work; award recoverable taxes on proven payments; total award equals $2,926,000 with interest per article 1619 CCQ and release of $10,000 security plus interest.

Court Disposition

AP&C Advanced Powders & Coatings Inc. ordered to pay Tekna Plasma Systems Inc. total costs of $2,926,000.

Orders

  • AP&C Advanced Powders & Coatings Inc. shall pay Tekna Plasma Systems Inc. costs in the total amount of $2,926,000, which includes recoverable taxes of $381,100.
  • Interest on the amounts awarded to be payable in accordance with article 1619 of the Civil Code of Quebec.