Seedling Life Science Ventures LLC v. Pfizer Canada Inc.

Seedling Life Science Ventures LLC v. Pfizer Canada Inc.

The Federal Court has no jurisdiction to entertain a motion to approve a private litigation funding agreement in a patent action outside the context of class proceedings; champerty is addressed by rendering offending agreements unenforceable rather than by pre-approval, and there is no need to waive or court-recognize the implied undertaking to permit disclosure to a funder when disclosure is for the litigation and the funder is bound by the undertaking; accordingly the motion for approval of the LFA is dismissed.

Citation
2017 FC 826
Parties
Plaintiff: Seedling Life Science Ventures, LLC; Defendant: Pfizer Canada Inc.; Third Party Funder: Bentham IMF Capital Limited
Court
Federal Court
Jurisdiction
Canada
Judgment Date
12 September 2017
Procedural Posture
Patent Infringement / Pre Trial Motion (approval of Litigation Funding Agreement)
Outcome
Motion dismissed without costs.
Legal Topics
Litigation Funding, Champerty and Maintenance, Implied Undertaking, Jurisdiction, Class Proceedings
Source Language
English
Patent Law Civil Procedure Contract Law Public Policy Litigation Funding Champerty and Maintenance Implied Undertaking Jurisdiction +1 more

Case Brief

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Parties

Seedling Life Science Ventures, LLC

Plaintiff

Pfizer Canada Inc.

Defendant

Bentham IMF Capital Limited

Third Party Funder

Procedural Posture

Patent Infringement / Pre Trial Motion (approval of Litigation Funding Agreement)

Legal Issues

  1. 1 Whether the Federal Court has jurisdiction to approve a private litigation funding agreement (LFA) in a patent action
  2. 2 Whether prior court approval of an LFA is necessary to prevent champerty or maintenance
  3. 3 Whether the doctrine of champerty/maintenance requires courts to vet funding agreements prior to litigation outside class proceedings

Ratio Decidendi

The Federal Court has no jurisdiction to entertain a motion to approve a private litigation funding agreement in a patent action outside the context of class proceedings; champerty is addressed by rendering offending agreements unenforceable rather than by pre-approval, and there is no need to waive or court-recognize the implied undertaking to permit disclosure to a funder when disclosure is for the litigation and the funder is bound by the undertaking; accordingly the motion for approval of the LFA is dismissed.

Court Disposition

Motion dismissed without costs.

Orders

  • The motion is dismissed, without costs.