Paramount Resources v. Import Tool Corporation Ltd.

Paramount Resources v. Import Tool Corporation Ltd.

The Master's dismissal of leave was incorrect. The court found the case falls within the second branch of Adams because the proposed third party (Command Fishing) was alleged to have been actively negligent in recovery operations and thus may bear independent liability; alternatively Rule 3-5(1)(c) applies because...

Source-derived case information.

Citation
2018 BCSC 599
Parties
Plaintiff: Paramount Resources; Plaintiff: Summit Resources Corp.; Plaintiff: Paramount Resources Ltd.; Defendant / Appellant: Import Tool Corporation Ltd.; Defendant: Baker Hughes Incorporated; Defendant: Baker Hughes Canada Company; Defendant: John Doe (Baker Hughes); Defendant: Weatherford Canada Ltd.; Defendant: Weatherford Artificial Lift Systems Canada Ltd.; Defendant: Precision Energy Services ULC; Defendant: Weatherford Canada Partnership; Proposed Third Party / Respondent: Command Fishing Services Inc.; Proposed Third Party: Command Fishing and Pipe Recovery Limited
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
21 March 2018
Procedural Posture
Civil Appeal Concerning Leave to File Third Party Notice / Appeal From Master’s Order Dismissing Leave Application
Outcome
Appeal allowed; Master’s order dismissing leave to file third party notice against Command Fishing Services Inc. set aside; leave granted to Import Tool to file third party notice against Command Fishing Services Inc.; costs awarded to Import Tool
Legal Topics
Third Party Proceedings, Leave to Issue Third Party Notice, Adams Rule, Contribution and Indemnity, Negligence Act, Standard of Review
Source Language
english
Civil Procedure Torts Negligence Contract Oil and Gas Third Party Proceedings Leave to Issue Third Party Notice Adams Rule +3 more

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Parties

Paramount Resources

Plaintiff

Summit Resources Corp.

Plaintiff

Paramount Resources Ltd.

Plaintiff

Import Tool Corporation Ltd.

Defendant / Appellant

Baker Hughes Incorporated

Defendant

Baker Hughes Canada Company

Defendant

John Doe (Baker Hughes)

Defendant

Weatherford Canada Ltd.

Defendant

Weatherford Artificial Lift Systems Canada Ltd.

Defendant

Precision Energy Services ULC

Defendant

Weatherford Canada Partnership

Defendant

Command Fishing Services Inc.

Proposed Third Party / Respondent

Command Fishing and Pipe Recovery Limited

Proposed Third Party

Procedural Posture

Civil Appeal Concerning Leave to File Third Party Notice / Appeal From Master’s Order Dismissing Leave Application

Legal Issues

  1. 1 Whether the Master erred in dismissing leave to file a third party notice against Command Fishing Services Inc.
  2. 2 Whether the proposed third party allegations disclose an independent cause of action or are merely defences imputable to the plaintiff (Adams rule)
  3. 3 Whether Rule 3-5(1)(c) of the Supreme Court Civil Rules applies such that issues between defendant and proposed third party are substantially the same as issues in the main action

Ratio Decidendi

The Master's dismissal of leave was incorrect. The court found the case falls within the second branch of Adams because the proposed third party (Command Fishing) was alleged to have been actively negligent in recovery operations and thus may bear independent liability; alternatively Rule 3-5(1)(c) applies because the issues between Import Tool and Command Fishing are substantially the same as those between plaintiffs and Import Tool and should be decided in the same action to avoid multiplicity. The appropriate standard of review was correctness and the appeal was allowed, granting leave to file the third party notice against Command Fishing Services Inc.

Court Disposition

Appeal allowed; Master’s order dismissing leave to file third party notice against Command Fishing Services Inc. set aside; leave granted to Import Tool to file third party notice against Command Fishing Services Inc.; costs awarded to Import Tool

Orders

  • Import Tool Corporation Ltd. granted leave to file and serve its third party notice against Command Fishing Services Inc. in the form attached as Schedule A to the September 5, 2017 notice of application after deleting any reference to Command Fishing and Pipe Recovery Limited
  • Import Tool Corporation Ltd. entitled to its costs of the appeal