Biofert Manufacturing Inc. v. Agrisol Manufacturing Inc.

Biofert Manufacturing Inc. v. Agrisol Manufacturing Inc.

Rule 420 double-tariff costs were not awarded because the August 2, 2019 escalating offer, when properly valued at trial, did not meet the Rule 420 requirement of being as favorable as the judgment at the trial date; solicitor-and-client costs were denied because defendants' conduct did not reach the threshold of reprehensible or outrageous behavior; exercising discretion under Rule 400 and balancing positive and negative factors, the court awarded lump sum costs of $80,000.00 inclusive to be paid jointly and severally by the corporate Defendants and Dr. Tahir Mahmood, and apportioned no costs for or against the remaining defendants.

Citation
2020 FC 501
Parties
Plaintiff/defendant by Counterclaim: Biofert Manufacturing Inc.; Defendant/plaintiff by Counterclaim: Agrisol Manufacturing Inc.; Defendant/plaintiff by Counterclaim: BioFert NA Manufacturing Inc.; Defendant/plaintiff by Counterclaim: Tahir Mahmood; Defendant/plaintiff by Counterclaim: Amaran Tyab; Defendant/plaintiff by Counterclaim: Saif Mahmood; Defendant/plaintiff by Counterclaim: Farrah Mahmood
Court
Federal Court
Jurisdiction
Canada
Judgment Date
8 April 2020
Procedural Posture
Intellectual Property Litigation (trademark and Copyright Infringement) / Post Judgment Costs Determination and Order
Outcome
Plaintiff awarded lump sum costs of $80,000.00 inclusive of fees, disbursements and taxes to be paid jointly and severally by Agrisol Manufacturing Inc., BioFert NA Manufacturing Inc. and Dr. Tahir Mahmood; no costs awarded for or against the other defendants.
Legal Topics
Damages, Costs, Offers to Settle, Rule 420, Rule 400, Solicitor and Client Costs, Double Tariff
Source Language
English
Intellectual Property Trademarks Copyright Civil Procedure Costs Damages Offers to Settle Rule 420 +3 more

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Parties

Biofert Manufacturing Inc.

Plaintiff/defendant by Counterclaim

Agrisol Manufacturing Inc.

Defendant/plaintiff by Counterclaim

BioFert NA Manufacturing Inc.

Defendant/plaintiff by Counterclaim

Tahir Mahmood

Defendant/plaintiff by Counterclaim

Amaran Tyab

Defendant/plaintiff by Counterclaim

Saif Mahmood

Defendant/plaintiff by Counterclaim

Farrah Mahmood

Defendant/plaintiff by Counterclaim

Procedural Posture

Intellectual Property Litigation (trademark and Copyright Infringement) / Post Judgment Costs Determination and Order

Legal Issues

  1. 1 Whether the plaintiff's August 2, 2019 escalating settlement offer qualified for double-tariff costs under Federal Courts Rules Rule 420
  2. 2 Whether solicitor-and-client costs were warranted against the defendants given their conduct and the trial circumstances
  3. 3 Appropriate valuation date for an escalating offer to settle

Ratio Decidendi

Rule 420 double-tariff costs were not awarded because the August 2, 2019 escalating offer, when properly valued at trial, did not meet the Rule 420 requirement of being as favorable as the judgment at the trial date; solicitor-and-client costs were denied because defendants' conduct did not reach the threshold of reprehensible or outrageous behavior; exercising discretion under Rule 400 and balancing positive and negative factors, the court awarded lump sum costs of $80,000.00 inclusive to be paid jointly and severally by the corporate Defendants and Dr. Tahir Mahmood, and apportioned no costs for or against the remaining defendants.

Court Disposition

Plaintiff awarded lump sum costs of $80,000.00 inclusive of fees, disbursements and taxes to be paid jointly and severally by Agrisol Manufacturing Inc., BioFert NA Manufacturing Inc. and Dr. Tahir Mahmood; no costs awarded for or against the other defendants.

Orders

  • Plaintiff to receive a lump sum of $80,000.00 inclusive of fees, disbursements and taxes from Agrisol Manufacturing Inc., BioFert NA Manufacturing Inc. and Dr. Tahir Mahmood on a joint and several basis
  • No costs are awarded for or against Amaran Tyab, Saif Mahmood and Farrah Mahmood