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Ontario Court of Appeal dismissed an appeal from a s. 137.1 dismissal, holding the action failed at the substantial-merit stage and the costs award stood.
The Court of Appeal for Ontario dismissed an appeal over economic tort, fiduciary duty, non-competition and bonus disputes, and upheld costs awards to the respondents.
Appeal from dismissal of an application to consolidate two related civil actions was dismissed because the actions did not sufficiently overlap and consolidation would not improve efficiency.
Federal Court allowed an appeal in part, striking a counterclaim paragraph seeking common law tort damages, but leaving statutory and officer-liability pleadings intact.
The court held that a cease and desist letter sent by counsel was absolutely privileged because it was closely tied to contemplated litigation and the later infringement actions.
The Court held the respondent's claims against the unions, in their essential character, arose out of the collective agreement (abuse of grievance process and obligations under occupational health and safety provisions) and that the grievance and arbitration process could have provided effective redress; inclusion of non-parties did not defeat arbitral exclusivity; therefore the arbitrator had exclusive jurisdiction and the court action against the unions was barred.
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The court exercised its discretion to deny the Westminer corporations their costs despite their overall legal success because the defendants re‑litigated findings of reprehensible conduct that had been previously and fully determined against them and failed to establish a significantly different outcome on those core facts; accordingly the defendants must bear their own costs except for a discrete prior order taxed at $1,000.
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The Foss v. Harbottle principle bars a parent/shareholder from suing for harms that are effectively suffered by its subsidiaries unless the shareholder can show direct, non-derivative damages; on the record Meditrust failed to establish direct damages for its asserted economic torts except for a triable claim of loss of goodwill, and the motions judge properly applied Rule 20 to grant partial summary judgment except as to the goodwill claim, which must proceed to trial.
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The Court upheld the interlocutory injunction in favour of the Shipyard because on a prima facie basis Local 625 and Tardif used unlawful means (including conduct arguably contrary to s.58(1) of the Trade Union Act) to interfere with performance of the Shipyard's contract, and the Shipyard showed a substantial risk of irreparable harm and the balance of convenience favoured injunctive relief; injunctions granted to the Marine Workers and individual respondents were set aside because they were redundant or rendered unnecessary by undertakings.
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