Federal Court Decisions

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Date: 20030430

Docket: T-916-01

Citation: 2003 FCT 538

Montreal, Quebec, April 30, 2003

Present:           The Honourable Mr. Justice Lemieux

BETWEEN:

                                                             CIVES CORPORATION

                                                                                                                                                          Plaintiff

                                                                                 and

                                                        EVEREST EQUIPMENT INC.

                                                                                   

                                                                                                                                                      Defendant

AND BETWEEN:

                                                        EVEREST EQUIPMENT INC.

                                                                                                                             Plaintiff by counterclaim

                                                                                 and

                                                             CIVES CORPORATION

                                                                                                                        Defendant by counterclaim


                                               REASONS FOR ORDER AND ORDER

[1]                 In this appeal, Cives Corporation (Cives) seeks to set aside the March 12, 2003 decision of Prothonotary Morneau who permitted Everest Equipment Inc. (Everest) to amend its statement of defence and counterclaim.

[2]                 On May 28, 2001, Cives commenced an action against Everest claiming Everest infringed its registered trade-marks Frink and Frink and Design (the trade-marks) used in association with snow plows.

[3]                 On January 31, 2002, Everest filed its defence and counterclaim. It denies Cives is the valid holder for the trade-marks; alleges Cives abandoned the trade-marks and, if not, Cives or its predecessors in title have used the trade-marks in such a way as to cause loss of inherent distinctiveness. Everest also denies using the trade-marks in Canada stating that it exports all of its wares to the United States where it holds a licence to use the trade-mark Frink and Design registered in the United States. In its counterclaim, Everest seeks an order from this Court to expunge Cives' registrations.

[4]                 Cives filed its reply on February 4, 2002. Everest moved to amend in February of 2003. Discoveries have not been held.

[5]                 In his reasons, Prothonotary Morneau applied the Federal Court of Appeal's decision in Canderel Ltée v. Canada, [1994] 1 F.C. 3 noting the proceedings were in their preliminary stages.

[6]                 He observed Cives had consented to some of the amendments sought by Everest. He was of the view the amendments consented to by Cives taken with the amendments objected to formed an integral whole.

[7]                 He considered the arguments made by Cives that Everest, through its amendments, was introducing a new cause of action related to a violation of technology rights as well as arguments concerning U.S. trade-mark litigation which Cives said was irrelevant on the issue of lack of distinctiveness in Canada.

[8]                 He rejected those arguments not being convinced Cives' comprehension of the amendments was accurate. To him, what Everest was seeking to do was simply to add precision and detail to the basic defences it was advancing, namely, abandonment, lack of distinctiveness, no chain of title and no use in Canada.


[9]                 Prothonotary Morneau's order was a discretionary one which did not raise questions vital to the final issue of the case. In such circumstances, Canada v. Aqua-Gem Investments Ltd. (1993), 149 N.R. 273 (F.C.A.) tells us the Court should only intervene if the exercise of the Prothonotary's discretion was based upon a wrong principle or upon a misapprehension of facts, that is, was clearly wrong.

[10]            Cives has not convinced me the Prothonotary made any error. I share Prothonotary Morneau's view that Cives' understanding of the purpose and effect of the Everest amendments is incorrect and this can be tested on discovery.

                                                                            ORDER

THIS COURT ORDERS that this appeal is dismissed with costs.

                 "François Lemieux"                

                             Judge                             


                                                  

                    FEDERAL COURT OF CANADA

                                  TRIAL DIVISION

Date: 20030430

Docket: T-916-01

BETWEEN:

                             CIVES CORPORATION

                                                                                         Plaintiff

                                                and

                       EVEREST EQUIPMENT INC.

                                                  

                                                                                     Defendant

                                                                                                                                       

             REASONS FOR ORDER AND ORDER

                                                                                                                                       


                                                                 FEDERAL COURT OF CANADA

                                                                              TRIAL DIVISION

                                           NAMES OF COUNSEL AND SOLICITORS OF RECORD

DOCKET:                                                          T-916-01

STYLE OF CAUSE:                                        CIVES CORPORATION

                                                                                                                                                                                    Plaintiff

                                                                                              and

                                                                     EVEREST EQUIPMENT INC.

                                                                                                

                                                                                                                                                                                Defendant

                                                                                                

PLACE OF HEARING:                                  Montreal, Quebec

DATE OF HEARING:                                    April 28, 2003

REASONS FOR ORDER AND ORDER :

THE HONOURABLE MR. JUSTICE LEMIEUX

DATED:                                                             April 30, 2003

APPEARANCES:

Mr. Daniel A. Artola                                                                                    FOR PLAINTIFF

Mr. Ronald Fecteau                                                                                     FOR DEFENDANT

SOLICITORS OF RECORD:

McCarthy Tétrault                                                                                       FOR PLAINTIFF

Montreal, Quebec

Monty, Coulombe                                                                                       FOR DEFENDANT

Sherbrooke, Quebec

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