Sea Tow Services International, Inc. v. C-Tow Marine Assistance Ltd.

Sea Tow Services International, Inc. v. C-Tow Marine Assistance Ltd.

The court declined to adjudicate costs for the Action as a whole because potential infringement/damages claims remain and summary disposal of those issues was not proper at this stage; C-Tow, as the largely successful party on the Application and the Motion, was awarded costs; the court adopted a lump-sum quantification approach applying 40% to the parties' disclosed fee and disbursement figures (inclusive of applicable taxes) and fixed costs at CAD 85,000 for the Motion and CAD 327,000 for the Application after resolving discrepancies in invoicing and disbursement figures.

Citation
2025 FC 335
Parties
Plaintiff (defendant by Counterclaim); Respondent in Application: Sea Tow Services International, Inc.; Defendant (plaintiff by Counterclaim); Applicant in Application: C-Tow Marine Assistance Ltd.
Court
Federal Court
Jurisdiction
Canada
Judgment Date
20 February 2025
Procedural Posture
Action and Application (trademarks) / Supplementary Judgment on Costs Following Hearing and Judgment
Outcome
C-Tow awarded costs of the Application and the Motion; costs of the Action not adjudicated at this time
Legal Topics
Invalidity of Trademark Registration, Bad Faith, Chain of Title, Summary Judgment, Costs Assessment, Section 57 Trademarks Act, Paragraph 18(1)(b), (d), (e)
Source Language
English
Intellectual Property Trademarks Civil Procedure Costs Invalidity of Trademark Registration Bad Faith Chain of Title Summary Judgment +3 more

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Parties

Sea Tow Services International, Inc.

Plaintiff (defendant by Counterclaim); Respondent in Application

C-Tow Marine Assistance Ltd.

Defendant (plaintiff by Counterclaim); Applicant in Application

Procedural Posture

Action and Application (trademarks) / Supplementary Judgment on Costs Following Hearing and Judgment

Legal Issues

  1. 1 Whether the court can adjudicate costs of the Action as a whole at this stage
  2. 2 Which party should be awarded costs of the Application and the Motion
  3. 3 How costs awards should be quantified (lump sum as percentage of fees)

Ratio Decidendi

The court declined to adjudicate costs for the Action as a whole because potential infringement/damages claims remain and summary disposal of those issues was not proper at this stage; C-Tow, as the largely successful party on the Application and the Motion, was awarded costs; the court adopted a lump-sum quantification approach applying 40% to the parties' disclosed fee and disbursement figures (inclusive of applicable taxes) and fixed costs at CAD 85,000 for the Motion and CAD 327,000 for the Application after resolving discrepancies in invoicing and disbursement figures.

Court Disposition

C-Tow awarded costs of the Application and the Motion; costs of the Action not adjudicated at this time

Orders

  • C-Tow awarded costs of the Motion in T-877-22 in the lump sum amount of CAD 85,000.00
  • C-Tow awarded costs of the Application in T-901-22 in the lump sum amount of CAD 327,000.00