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A-394-81
Brandlake Products Limited (Appellant) (Defen- dant)
v.
Adidas (Canada) Limited (Respondent) (Plain- tiff)
Court of Appeal, Heald, Ryan JJ. and Hyde D.J.—Toronto, March 31 and April 2, 1982.
Practice — Discovery — Written interrogatories — Appeal from judgment of Trial Division refusing request for examination for discovery of plaintiff's officer and substituting therefor an order for written interrogatories — No interrogatories were before Court and none sought by either party — Whether Rule 466.1 precludes order for interrogatories in such case — Whether Rule 2(2) gives Court jurisdiction to order interrogatories on own motion where no jurisdiction to do so found in Rules or substantive law — Possible equitable jurisdiction of Court to order interrogatories not properly invoked in this case — Appeal allowed — Federal Court Rules 2(2) and 466.1.
APPEAL. COUNSEL:
A. David Morrow for appellant (defendant). Robert T. Hughes for respondent (plaintiff).
SOLICITORS:
Smart & Biggar, Ottawa, for appellant. Donald F. Sim, Q.C., Toronto, for respondent.
The following are the reasons for judgment rendered in English by
HEALD J.: This is an appeal from a judgment of the Trial Division dated June 29, 1981 pursuant to an application made by this appellant for an order, inter alia, that the plaintiff attend by its officer Mr. Thomas S. Nease for examination for discovery of the plaintiff on the issue raised by paragraphs 10(e) through (i) of the statement of defence as amended on April 23, 1981. The learned Motions Judge refused the appellant's request for examination for discovery but ordered instead "... that written interrogatories be had in this matter, the questions to be formulated and
given to counsel for the plaintiff within seven days and completed by 31 July, 1981".
The appellant's notice of motion did not ask for written interrogatories nor was there any subsequent request by it for interrogatories. The appellant submitted that the Court has no jurisdiction to order interrogatories ex proprio motu and that interrogatories may only be ordered if applied for by a party, and in support of this submission, referred the Court to Federal Court Rule 466.1 which reads as follows:
Rule 466.1 (1) A party to any proceeding in the Court may apply to the Court for an order
(a) giving him leave to serve on any other party interrogatories relating to any matter of fact in question between those two parties; and
(b) requiring that other party to answer the interrogatories on affidavit within such period as may be specified in the order.
(2) A copy of the proposed interrogatories shall be served with the notice of the motion for an order under paragraph (1).
(3) Leave shall only be granted pursuant to an application under paragraph (1) for such interrogatories as, in the opinion of the Court, are necessary
(a) to dispose fairly of the matter; or
(b) to save costs.
(4) Interrogatories, together with a copy of the order granting leave to serve them, shall be served by personal service on the attorney or solicitor on the record for the party to be served if there is one, and, otherwise, shall be served on that party by personal service, or in such other way as the Court may specially authorize.
(5) An affidavit answering interrogatories as required under this Rule may, subject to paragraph (6), be made by an appropriate responsible officer of a corporation or the Crown or by a responsible person who has the management of the appropriate part of the party's affairs.
(6) An order granting leave to serve interrogatories may provide that the party have all or some of the interrogatories answered by an affidavit of one or more specified agents, officers or servants.
(7) Where a person objects to answering any interrogatories on the ground of privilege or public policy, he may take the objection in his affidavit in answer.
(8) If any party, or any person whom the party has been required under paragraph (6) to have answer interrogatories, answers any of them insufficiently, the Court may make an
order requiring him to make a further answer either by affidavit or by oral examination as the Court may direct.
(9) If a party against whom an order has been made under this Rule fails to comply with it, the Court may make such order as it thinks just including, in particular, an order that the action be dismissed or, as the case may be, an order that the defence be struck out and that judgment be entered accordingly.
(10) If a person against whom an order has been made under this Rule fails to comply with it, he is, without prejudice to paragraph (9), liable to attachment and committal under Rule 2500.
(11) Service of an order to answer interrogatories on the attorney or solicitor on the record for the party is sufficient service to found an application under Rule 2500 for disobeying the order, but the party may show in answer to the application that he had no notice or knowledge of the order.
(12) Any order made under this Rule (including an order made on appeal) may, on sufficient cause being shown, be revoked or varied by a subsequent order of the Court.
It will be seen that Rule 466.1 contemplates an application to the Court by a party and also contemplates that the proposed interrogatories will be before the Court and the parties when the application is considered by the Court.
It is thus clear that Rule 466.1 was not complied with. Accordingly, the learned Motions Judge did not derive his authority to issue the impeached order from that Rule. The respondent submitted, however, that Rule 466.1 does not preclude the Court from ordering interrogatories on its own initiative and in support of this submission, relied on Federal Court Rule 2(2) which reads as follows:
Rule 2. ...
(2) These Rules are intended to render effective the substan tive law and to ensure that it is carried out; and they are to be so interpreted and applied as to facilitate rather than to delay or to end prematurely the normal advancement of cases.
In my view, Rule 2(2) does not operate so as to confer jurisdiction upon the Court per se. Rule 2 provides guidelines for the interpretation of the subsequent Rules. It is to be applied in the inter pretation of all the other Rules of Court including Rule 466.1.
However, it does not, in itself, change the sub stantive law or confer jurisdiction on the Court in
circumstances where jurisdiction cannot be found elsewhere in the Rules or the substantive law. As I read Rule 2, as applied to the circumstances of this case, it requires an interpretation of Rule 466.1 which will facilitate rather than delay the normal advancement of the case but it does not extend or add to the Court's jurisdiction so as to entitle the Court to order interrogatories in cases not encom passed by Rule 466.1.
Since the Federal Court of Canada is a court of equity, and since interrogatories were originally an equitable device for obtaining not only oral discov ery of facts but testimony for trial as well, I have considered the possibility that this Court possesses equitable jurisdiction to order interrogatories quite apart from the specific authority given to it pursu ant to Rule 466.1. However, even assuming such jurisdiction, it is my view that the Court should not order interrogatories in situations such as this where they have not been requested by any of the parties and where specific interrogatories are not before the Court for approval or rejection at the time the order is made. In my opinion, a blanket order for interrogatories is not proper.
Accordingly, and for the above reasons, I would allow the appeal with costs and set aside the order of the Trial Division dated June 29, 1981. Since the learned Motions Judge, in ordering inter rogatories, obviously considered that some discov ery was justified, I would refer the matter back to the Trial Division for reconsideration on the basis that in the circumstances of this case, an order for interrogatories in lieu of examination for discovery is not proper.
RYAN J.: I agree. HYDE D.J.: I agree.
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