Tremblay v. Orio Canada Inc.
- Citation
- 2011 FC 1437
- Status
- Judgment
- Jurisdiction
- Canada
- Court
- Federal Court
- Decision
- 7 December 2011
- Posture
- Copyright Infringement (software) / Motion for Leave to Amend Pleadings and Ruling on Production Objections (pre Trial Discovery)
- Language
- English
More details
- Court
- Federal Court
- Decision
- 7 December 2011
- Posture
- Copyright Infringement (software) / Motion for Leave to Amend Pleadings and Ruling on Production Objections (pre Trial Discovery)
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
Leave to amend was granted because the proposed amendments were not plainly bound to fail and were necessary to define the real issues raised by discovery; production of the requested client lists, invoices and contracts was ordered as relevant to identifying witnesses and calculating damages and the defendant failed to show unusual circumstances to exclude the plaintiff from access, so a protective order including the plaintiff must be agreed and the documents produced accordingly; continuation of examination for discovery was permitted within set time limits.
Court disposition
Motion to amend allowed; production of specified documents ordered with a protective order that includes the plaintiff; continuation of discovery permitted.
Orders
- Authorize plaintiff to amend statement of claim in accordance with draft enclosed with plaintiff's November 30, 2011 letter, by serving and filing amended statement of claim on or before December 13, 2011.
- Authorize parties to subsequently amend pleadings as a result in accordance with time limits in the Federal Courts Rules.
- Order that counsel agree on a draft protection order that does not leave out the plaintiff and that the documents sought be produced within 20 days after such a draft order is signed, which draft order shall be jointly submitted to the Court on or before December 16, 2011.
- Permit the plaintiff to continue and complete his examination of the defendant's representative, François Gagné, on the answers provided following his July 5, 2011 examination and on questions arising reasonably from the documents to be provided, on a date agreed by counsel provided the continuation occurs on or before January 13, 2012.
02
Material facts
Parties
Doris Tremblay
Plaintiff / Defendant by Counterclaim Counsel: Pascal LauzonOrio Canada Inc.
Defendant / Plaintiff by Counterclaim Counsel: André J. Bélanger03
Procedural history
Posture
Copyright Infringement (software) / Motion for Leave to Amend Pleadings and Ruling on Production Objections (pre Trial Discovery)
04
Questions and positions
Legal issues
- 01
Whether the plaintiff should be granted leave to amend the statement of claim to allege unauthorized copying and installation of source code by a third party
- 02
Whether the defendant must produce client lists, invoices and contracts and whether such documents may be disclosed to the plaintiff personally or only to his counsel
- 03
Whether the defendant established 'unusual circumstances' to exclude the plaintiff from access to produced documents
Party arguments
- Applicant
- Plaintiff sought leave to amend to add allegations revealed at discovery that a third party made a full copy of the source code which was installed on defendant's clients' servers; plaintiff sought production of a list of current clients, invoices since June 2009 and contracts since June 2009 to identify witnesses and quantify damages and requested that he personally have access to those documents under a protection order.
- Respondent
- Defendant did not oppose production as such but sought that produced documents be disclosed to plaintiff's counsel only and not to the plaintiff personally, asserting concerns about the plaintiff's bad faith/vindictiveness and seeking to rely on principles from Brantford Chemicals and Pharmascience to justify excluding the plaintiff from access.
05
Court’s reasoning
Legal principles
- 01
Canderel Ltd v Canada, [1994] 1 F.C. 3 (C.A.)
Amendments to pleadings should be allowed at any stage to determine the real questions in controversy unless allowance would result in injustice not compensable by costs and would serve the interests of justice.
- 02
Raymond Cardinal et al. v Her Majesty the Queen (unreported), Appeal Division (A-294-77)
An amendment should be allowed unless it is plain and obvious that the amendment is bound to fail.
- 03
Merck & Co. v Brantford Chemicals Inc., (2005) 43 C.P.R. (4th) 233; Pharmascience Inc. v Glaxosmithkline Inc., 2007 FC 360
Disclosure restrictions excluding a party (e.g. allowing access to counsel only) require demonstration of unusual circumstances to justify departing from the norm that parties have access to documents.
- 04
Implied undertaking doctrine (court's reasoning)
Parties and counsel are bound by the implied undertaking rule regarding subsequent use of information obtained in litigation; absence of evidence challenging honesty may weigh against restricting access.
06
Ratio, limits and disposition
Ratio decidendi
Leave to amend was granted because the proposed amendments were not plainly bound to fail and were necessary to define the real issues raised by discovery; production of the requested client lists, invoices and contracts was ordered as relevant to identifying witnesses and calculating damages and the defendant failed to show unusual circumstances to exclude the plaintiff from access, so a protective order including the plaintiff must be agreed and the documents produced accordingly; continuation of examination for discovery was permitted within set time limits.
Obiter and limits
- Court noted it had no evidence that parties were competitors or engaged in parallel foreign proceedings.
- Court expressed that it could not conclude the plaintiff's action was bound to fail despite defendant's allegations of vindictiveness and bad faith.
- Court emphasized common practice that counsel should agree on a draft protection order including the party seeking documents.
Court disposition
Motion to amend allowed; production of specified documents ordered with a protective order that includes the plaintiff; continuation of discovery permitted.
- Authorize plaintiff to amend statement of claim in accordance with draft enclosed with plaintiff's November 30, 2011 letter, by serving and filing amended statement of claim on or before December 13, 2011.
- Authorize parties to subsequently amend pleadings as a result in accordance with time limits in the Federal Courts Rules.
- Order that counsel agree on a draft protection order that does not leave out the plaintiff and that the documents sought be produced within 20 days after such a draft order is signed, which draft order shall be jointly submitted to the Court on or before December 16, 2011.
- Permit the plaintiff to continue and complete his examination of the defendant's representative, François Gagné, on the answers provided following his July 5, 2011 examination and on questions arising reasonably from the documents to be provided, on a date agreed by counsel provided the continuation occurs on or before January 13, 2012.
Source and reliance status
Federal Court · 7 December 2011
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Federal Court
Judgment· 7 December 2011
Tremblay v. Orio Canada Inc. Court (s) Database Federal Court Decisions Date 2011-12-07 Neutral citation 2011 FC 1437 File numbers T-2090-10 Decision Content Date: 20111207 Docket: T-2090-10 Citation: 2011 FC 1437 [UNREVISED CERTIFIED ENGLISH TRANSLATION] Montréal, Quebec, December 7, 2011 PRESENT: Richard Morneau, Prothonotary BETWEEN:
DORIS TREMBLAY Plaintiff/ Defendant by Counterclaim and ORIO CANADA INC. Defendant/ Plaintiff by Counterclaim
REASONS FOR ORDER AND ORDER [1] UPON reading the motion records of the parties and hearing their counsel on a motion by the plaintiff and defendant by counterclaim (the plaintiff) for leave to amend his statement of claim in accordance with the draft submitted and for a ruling on the defendant’s objections to the production of certain financial and commercial documents; [2] WHEREAS this motion is, more specifically, part of an action for copyright infringement commenced by the plaintiff in relation to control software for automobile dealerships, and whereas the plaintiff states that he developed and improved this software (the modified SAM) and considers himself the owner of the copyright; [3] WHEREAS it is appropriate to deal first with the plaintiff’s motion to amend and to bear in mind that, in addition to the minor amendments, the primary amendment the plaintiff seeks to add stems from the fact that the examination for discovery of the defendant’s representative revealed that the defendant permitted a third party, Groupe Enode inc., to make a complete copy on a server of the source code at issue and that this unauthorized copy was subsequently installed on servers belonging to the defendant’s clients. The plaintiff now wishes to allege this situation so that the issues between the parties are properly defined; [4] WHEREAS with respect to the principles that apply to the
amendment of pleadings, the following passage from Canderel Ltd v Canada, [1994] 1 F.C. 3 (C.A.), at page 10, clearly reflects the latitude that the Court must demonstrate in this matter: . . . while it is impossible to enumerate all the factors that a judge must take into consideration in determining whether it is just, in a given case, to authorize an amendment, the general rule is that an amendment should be allowed at any stage of an action for the purpose of determining the real questions in controversy between the parties, provided, notably, that the allowance would not result in an injustice to the other party not capable of being compensated by an award of costs and that it would serve the interests of justice. [5] WHEREAS as a backdrop to these observations, it may be added that in the case of an amendment, as in an application to strike a proceeding, the amendment should be allowed unless it is plain and obvious that the amendment is bound to fail (see Raymond Cardinal et al. v Her Majesty the Queen, unreported decision of the appeal division of this Court dated January 31, 1994, docket A‑294‑77, Heald, Décary and Linden JJ.A.); [6] WHEREAS the Court cannot conclude at this stage that the amendments sought are bound to fail, notwithstanding that the defendant seems to consider that the plaintiff’s action is, from the outset, an act of vindictiveness and bad faith; [7]
THUS, in light of the preceding reasons and the principles set out in Canderel and Cardinal above, the Court intends to comply with the plaintiff’s request for amendments; [8] WHEREAS, with respect to the request for a ruling on the objections, the remedy sought by the plaintiff consists, in fact, in obtaining production of the following documents (the documents sought) from the defendant: - a list of the defendant’s current clients (fifth request); - the invoices sent since June 2009 to the defendant’s clients (sixth request); - a copy of the contracts signed since June 2009 between the defendant and its clients (seventh request). [9] WHEREAS the Court regards the production of these documents as relevant for the purposes of identifying potential witnesses and calculating damages; [10] WHEREAS the defendant, in fact, does not oppose the production of the documents as such but requests that these documents be disclosed to counsel for the plaintiff only and not to the plaintiff himself; [11] WHEREAS after reviewing the parties’ motion records, their counsel’s representations at the hearing, and the principles set out by this Court in Merck & Co. v Brantford Chemicals Inc. (2005) 43 C.P.R. (4th) 233 and Pharmascience Inc. v Glaxosmithkline Inc., 2007 FC 360 (Hughes J., April 3, 2007), the Court finds however that the defendant has not established unusual circumstances within the
meaning of Brantford Chemicals and Pharmascience that would lead the Court to disregard the fact that the plaintiff himself should also have access to the documents sought; [12] WHEREAS the Court also finds that it does not have the evidence that would support calling into question the honesty and trust that the plaintiff and his counsel will comply with a confidentiality order that includes them. Furthermore, both parties know very well that they are bound by the implied undertaking rule with respect to the subsequent use of information obtained in the course of litigation; [13] WHEREAS the Court believes that these parties are not involved in parallel proceedings in foreign jurisdictions and should not be viewed as competitors; [14] WHEREAS, as discussed in court, the Court considers—as is the widespread practice—that counsel for the parties may and shall agree on a draft protection order that does not leave out the plaintiff himself and that the documents sought shall be produced within 20 days after such a draft order is signed, a draft protection order that shall be jointly submitted to the Court on or before December 16, 2011;
ORDER
THE COURT 1. AUTHORIZES the plaintiff to amend his statement of claim in accordance with the draft enclosed with his letter of November 30, 2011, by serving and filing the amended statement of claim on or before December 13, 2011; 2. AUTHORIZES the parties subsequently to amend their pleadings as a result, in accordance with the time limits prescribed in the Federal Courts Rules; 3. ORDERS that counsel for the parties agree on a draft protection order that does not leave out the plaintiff and that the documents sought be produced within 20 days after such a draft order is signed, which draft order shall be jointly submitted to the Court on or before December 16, 2011; 4. PERMITS the plaintiff to continue and to complete his examination of the defendant’s representative, François Gagné, on the answers provided following his examination of July 5, 2011, and on the questions that also arise reasonably from the documents sought to be provided, on a date agreed to by counsel for the parties as long as the continuation of the examination takes place on or before January 13, 2012. Costs in the cause. “Richard Morneau” Prothonotary Certified true translation Mary Jo Egan, LLB
FEDERAL COURT
SOLICITORS OF RECORD DOCKET: T-2090-10 STYLE OF CAUSE: DORIS TREMBLAY and ORIO CANADA INC. PLACE OF HEARING: Montréal, Quebec DATE OF HEARING: December 5, 2011
REASONS FOR ORDER AND ORDER: MORNEAU, P. DATED: December 7, 2011 APPEARANCES: Pascal Lauzon FOR THE PLAINTIFF/
DEFENDANT BY COUNTERCLAIM André J. Bélanger FOR THE DEFENDANT/
PLAINTIFF BY COUNTERCLAIM
SOLICITORS OF RECORD BCF s.e.n.c.r.l. Montréal, Quebec FOR THE PLAINTIFF/
DEFENDANT BY COUNTERCLAIM André J. Bélanger Montréal, Quebec FOR THE DEFENDANT/
PLAINTIFF BY COUNTERCLAIM
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