Canada Judgment

Federal Court

Fluid Energy Group Ltd. v. Mud Master Drilling Fluid Services Ltd.

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Professional case brief

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Source document

01

Holding and result

The motion for reconsideration was dismissed because the Court had properly considered and set aside the Prothonotary's Order in its entirety on appeal; when an order is appealed seeking it be set aside the whole order is under consideration and no clerical omission existed that would permit reconsideration under Rule 369/397(2).

Court disposition

Motion dismissed

Orders

  • The motion is dismissed
  • The Plaintiff is entitled to its costs of this motion

02

Material facts

Parties

FLUID ENERGY GROUP LTD.

Plaintiff/defendant by Counterclaim Counsel: Trevor McDonald

MUD MASTER DRILLING FLUID SERVICES LTD.

Defendant/plaintiff by Counterclaim Counsel: Jonathan Roch

HEARTLAND ENERGY GROUP LTD. (Seychelles)

Defendant/plaintiff by Counterclaim Counsel: Jonathan Roch

HEARTLAND ENERGY GROUP LTD. (Nevada)

Defendant/plaintiff by Counterclaim Counsel: Jonathan Roch

ALCHEM DRILLING FLUID SERVICE LTD.

Defendant/plaintiff by Counterclaim Counsel: Jonathan Roch

Amounts and remedies

  • Costs Award Midpoint Column V: 0

03

Procedural history

  1. Posture

    Appeal From Prothonotary Order; Motion to Reconsider Under Federal Courts Rules / Post‑appeal Reconsideration Motion (rule 369)

04

Questions and positions

Legal issues

Party arguments

Applicant
Defendants submitted the Court overlooked that the Plaintiff did not appeal the costs portion of the Prothonotary's Order and that the Appeal Order should have set aside only the appealed portions; they sought reconsideration under rules permitting correction of clerical mistakes or omissions.
Respondent
Plaintiff submitted that by seeking to set aside the Prothonotary's Order the appeal placed the entire Order under consideration so the costs component need not be specifically mentioned; the Court had addressed the costs issue and there was no oversight or clerical error requiring reconsideration.

05

Court’s reasoning

  1. 01

    Federal Courts Rules, SOR/98-106, Rules 369 and 397(2)

    Reconsideration under Rule 369 and correction of clerical mistakes under Rule 397(2) are limited and not available where no oversight occurred

  2. 02

    Principle applied by Zinn J., 2020 FC 480

    When an order is appealed seeking that it be set aside, the whole order is under consideration on appeal

  3. 03

    Federal Courts Tariff / Prothonotary practice (applied in 2020 FC 480)

    Costs may be awarded in accordance with the Tariff (Column V) and are part of a prothonotary's order subject to appellate review

  4. 04

    Applied reasoning by Zinn J., 2020 FC 480

    An appellate court may consider the merits afresh and dismiss the underlying motion applying the correct legal test

06

Ratio, limits and disposition

Ratio decidendi

The motion for reconsideration was dismissed because the Court had properly considered and set aside the Prothonotary's Order in its entirety on appeal; when an order is appealed seeking it be set aside the whole order is under consideration and no clerical omission existed that would permit reconsideration under Rule 369/397(2).

Obiter and limits

  • The Court was aware of and deliberately set aside the costs portion of the Prothonotary's Order when allowing the appeal and deciding the motion afresh
  • Reconsideration is not available where the alleged omission is not a clerical mistake but a substantive judicial determination

Court disposition

Motion dismissed

  • The motion is dismissed
  • The Plaintiff is entitled to its costs of this motion

Source and reliance status

Federal Court · 2 April 2020

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Judgment reading view

Judgment text

The complete available source text.

Source document

Federal Court

Judgment· 2 April 2020

2020 FC 480

Fluid Energy Group Ltd. v. Mud Master Drilling Fluid Services Ltd. Court (s) Database Federal Court Decisions Date 2020-04-02 Neutral citation 2020 FC 480 File numbers T-1642-16 Decision Content Date: 20200402 Docket: T-1642-16 Citation: 2020 FC 480 Ottawa, Ontario, April 2, 2020 PRESENT: The Honourable Mr. Justice Zinn BETWEEN: FLUID ENERGY GROUP LTD. Plaintiff/ Defendant by Counterclaim and MUD MASTER DRILLING FLUID SERVICES LTD., HEARTLAND ENERGY GROUP LTD., a corporation incorporated in Seychelles, HEARTLAND ENERGY GROUP LTD., a corporation incorporated in Nevada, and ALCHEM DRILLING FLUID SERVICE LTD. Defendants/ Plaintiffs by Counterclaim

ORDER AND REASONS UPON MOTION made by the Defendants pursuant to Rule 369 of the Federal Courts Rules, SOR/98-106, to reconsider the Order made February 12, 2020 [the Appeal Order], pursuant to Rule 397(2), on the ground that “Clerical mistakes, errors or omissions in an order may at any time be corrected by the Court;” AND UPON considering the motion records filed by the parties and the written submissions therein; AND UPON determining that this motion must be dismissed for the reasons set forth in the following Endorsement;

ENDORSEMENT [1] The Defendants submit that in rendering the Appeal Order the Court overlooked that the Plaintiff had not appealed the entire Order of the Prothonotary and/or accidentally omitted to state that the Order of the Prothonotary was being set aside only with respect to the portions that were appealed. Specifically, they submit that the costs portion of the Prothonotary’s Order was not appealed. [2] The Order of the Prothonotary had two components: (1) she dismissed the Plaintiff’s motion to remove the Counsel Eyes Only designation from the documents listed therein, and (2) she ordered the Plaintiff to pay the Defendants their costs of the motion at the mid-point of Column V of the Tariff, together with all reasonable disbursements. [3] The Plaintiff appealed that Order and its Notice of Motion recited that it was seeking “An order allowing this appeal and setting aside the Order of Madam Prothonotary Aylen, which denied Fluid’s motion to remove the designation of “Confidential Information – Counsel’s Eyes Only” – (CEO) from the following documents …” and its costs of the motion. [4] The Court on appeal allowed the appeal finding that the Prothonotary had applied the wrong legal test. The Court thus set aside the Order of the Prothonotary. The Court then considered afresh the motion to remove the CEO Designations and, applying the correct test, dismissed the

Plaintiff’s motion. The Appeal Order set aside the Order of Prothonotary Aylen, dismissed the Plaintiff’s motion, and awarded a single set of costs to the Defendants. [5] This motion must be dismissed. First, when an Order is appealed, seeking that it be set aside, the remedy requested here by the Plaintiff, all of the Order is under consideration, and there is no requirement that the costs portion be specifically mentioned in the Notice of Motion. [6] Second, the Court was alive to the award of costs issued by the Prothonotary and, the Appeal Order setting aside her Order, set aside all of her Order, including the costs portion. Nothing was overlooked or accidentally omitted and reconsideration is not available. [7] The Plaintiff is entitled to its costs of this motion. ORDER IN T-1642-16 THIS COURT ORDERS that: The motion is dismissed; and The Plaintiff is entitled to its costs of this motion. "Russel W. Zinn" Judge

FEDERAL COURT

SOLICITORS OF RECORD DOCKET: T-1642-16 STYLE OF CAUSE: FLUID ENERGY GROUP LTD. v MUD MASTER DRILLING FLUID SERVICES LTD. ET AL MOTION IN WRITING CONSIDERED AT OTTAWA, ONTARIO, PURSUANT TO RULE 369 OF THE FEDERAL COURTS RULES ORDER AND REASONS: ZINN J. DATED: APRIL 2, 2020 WRITTEN SUBMISSIONS BY: Trevor McDonald For The plaintiff/ defendant by counterclaim Jonathan Roch For The defendants/ plaintiffs by counterclaim SOLICITORS OF RECORD: Burnet, Duckworth & Palmer LLP Barristers & Solicitors Calgary, Alberta For The plaintiff/ defendant by counterclaim MBM Intellectual Property Law LLP Barristers & Solicitors Ottawa, Ontario For The defendants/ plaintiffs by counterclaim

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Federal Courts Rules, SOR/98-106, Rule 369

Legislation

Legislation referenced in the available case record.

Federal Courts Rules, SOR/98-106, Rule 397(2)

Legislation

Legislation referenced in the available case record.

Federal Courts Tariff (Column V)

Legislation

Legislation referenced in the available case record.

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