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A-815-81
Anheuser-Busch, Inc. (Appellant) (Appellant) v.
Carling O'Keefe Breweries of Canada Limited and Registrar of Trade Marks (Respondents) (Respondents)
Court of Appeal, Heald, Le Dain JJ. and Kelly D.J.—Toronto, September 28; Ottawa, November 22, 1982.
Trade marks — Appeal from judgment of Trial Division dismissing appeal from decision of Registrar of Trade Marks staying proceedings brought by appellant under s. 44 of Trade Marks Act — Question whether appeal lies from decision to allow stay — Act provides for summary and expeditious procedure under s. 44 — Principle of denying relief from interlocutory decisions where no legal rights or obligations flow, under s. 28 of Federal Court Act, found consistent and compatible — Trial Division without jurisdiction to hear appeal — Registrar without statutory power to grant stay — Limited purpose of s. 44 respecting evidence of use undermined by unduly lengthy procedures — Stays, and indefinite post ponement, amount to declining jurisdiction — Appeal dis missed without costs — Trade Marks Acts, R.S.C. 1970, c. T-10, ss. 44 (as am. by S.C. 1980-81-82-83, c. 47, s. 46), 56(l) — Trade Marks Act, S.C. 1952-53, c. 49, ss. 36(l), 55(1) — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. /0, s. 28.
Judicial review — Statutory appeals — Trade Marks Act, s. 56 — Whether decision to stay s. 44 proceedings is decision from which appeal lies under s. 56 — Meaning of "decision" in Federal Court Act, s. 28 — Whether case law on s. 28 applicable to "decision" in s. 56, Trade Marks Act — S. 28 decisions not binding in case of statutory appeal — Rationale of s. 28 cases explained — S. 44 procedure to be expeditious — S. 28 rationale therefore applicable as compatible with relevant sections of Trade Marks Act — Trial Division lacked jurisdiction to hear s. 56 appeal — Trade Marks Act, R.S.C. 1970, c. T-10, ss. 44 (as am. by S.C. 1980-81-82-83, c. 47, s. 46), 56(l) — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28.
CASES JUDICIALLY CONSIDERED
APPLIED:
National Indian Brotherhood, et al. v. Juneau, et al. (No. /), [1971] F.C. 66 (T.D.); The Noxzema Chemical Co.
of Canada Ltd. v. Sheran Mfg. et al. (1968), 38 Fox Pat. C. 89 (Ex. Ct.).
OVERRULED:
Skipper's, Inc. v. Registrar of Trade Marks et al., Feder al Court, T-5863-79, judgment dated August 25, 1980.
CONSIDERED:
Hoffmann-La Roche Limited v. Delmar Chemicals Lim ited, [1966] Ex.C.R. 713; J. K. Smit & Sons Internation al Limited v. Packsack Diamond Drills Ltd., [1964] Ex.C.R. 226.
REFERRED TO:
The Attorney General of Canada v. Cylien, [1973] F.C. 1166 (C.A.); British Columbia Packers Limited, et al. v. Canada Labour Relations Board et al., [1973] F.C. 1194 (C.A.); In re Anti-dumping Act and in re Danmor Shoe Company Ltd., [1974] 1 F.C. 22 (C.A.); Richard v. Public Service Staff Relations Board, [1978] 2 F.C. 344 (C.A.); Canadian Air Line Employees' Association v. Wardair Canada (1975) Ltd., et al., [ 1979] 2 F.C. 91 (C.A.); Latif v. Canadian Human Rights Commission et al., [1980] 1 F.C. 687 (C.A.); Canadian Human Rights Commission v. British American Bank Note Company, [198!] 1 F.C. 578 (C.A.); Smith Kline & French Inter- American Corporation v. Micro Chemicals Limited, [ 1968] 1 Ex.C.R. 326; Canadian Broadcasting Corpora tion et al. v. Quebec Police Commission, [1979] 2 S.C.R. 618; Julius v. The Right Rev. the Lord Bishop of Oxford et al. (1879-80), 5 A.C. 214 (l-I.L.); Canadian Pacific Railway v. The Province of Alberta et al., [1950] S.C.R. 25.
COUNSEL:
L. Morphy, Q.C. and S. Block for appellant (appellant).
R. E. Dimock for respondent (respondent) Carling O'Keefe Breweries of Canada Lim ited.
R. Levine for respondent (respondent) Regis trar of Trade Marks.
SOLICITORS:
Rogers, Bereskin & Parr, Toronto, for appel lant (appellant).
Sim, Hughes, Toronto, for respondent (respondent) Carling O'Keefe Breweries of Canada Limited.
Deputy Attorney General of Canada for respondent (respondent) Registrar of Trade Marks.
The following are the reasons for judgment rendered in English by
HEALD J.: This is an appeal from a judgment of the Trial Division [Federal Court, T-2388-81, judgment dated October 22, 1981] dismissing the appellant's appeal from a decision of the respond ent Registrar of Trade Marks (the Registrar). In that decision, dated March 25, 1981, (A.B. pp. 17-21), the Registrar stayed the proceedings instituted by the appellant under the provisions of section 44 of the Trade Marks Act, R.S.C. 1970, c. T-10 [as am. by S.C. 1980-81-82-83, c. 47, s. 46], pending the termination of proceedings "... before the Federal Court of Canada between Car- ling O'Keefe Breweries of Canada Limited and Anheuser-Busch Inc. (Court No. T-298-80)." The stay was granted pursuant to a preliminary motion put forward on behalf of the respondent Carling O'Keefe Breweries of Canada Limited (Carling) on March 12, 1981.
The relevant facts are not in dispute and may be summarized as follows. On September 19, 1979, the appellant requested the Registrar to issue to Carling, as registered owner of trade mark No. 185/40809, the notice permitted under the provisions of said section 44.' On October 17,
' Section 44 reads as follows:
44. (I) The Registrar may at any time and, at the written request made after three years from the date of the registra tion by any person who pays the prescribed fee shall, unless he sees good reason to the contrary, give notice to the registered owner requiring him to furnish within three months an affidavit or statutory declaration showing with respect to each of the wares or services specified in the registration, whether the trade mark is in use in Canada and, if not, the date when it was last so in use and the reason for the absence of such use since such date.
(2) The Registrar shall not receive any evidence other than such affidavit or statutory declaration, but may hear representations made by or on behalf of the registered owner of the trade mark or by or on behalf of the person at whose request the notice was given.
(3) Where, by reason of the evidence furnished to him or the failure to furnish such evidence, it appears to the Regis trar that the trade mark, either with respect to all of the wares or services specified in the registration or with respect to any of such wares or services, is not in use in Canada and that the absence of use has not been due to special circum-
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1979, the Registrar sent a section 44 notice to Carling. Carling was subsequently granted an extension of time within which to respond to the section 44 notice by the Registrar, said extension to terminate on April 17, 1980. On April 9, 1980, Carling made an application to stay pending the determination of the matters in issue in Federal Court action T-298-80 between itself and the appellant. This request for a stay was refused by the Registrar but a further extension of time within which to comply with the requirements of section 44 was given to Carling. Subsequently, on July 18, 1980, Carling filed its reply to the section 44 notice which consisted of the affidavit of Brian Edwards. At appellant's request, the Regis trar held an oral hearing on the section 44 pro ceedings on March 12, 1981. At the commence ment of that hearing, Carling brought the preliminary motion for a stay referred to supra. The Registrar reserved on that motion and pro ceeded to hear argument on the merits of the section 44 proceedings. On March 25, 1981, the Registrar granted Carling's motion to stay as related supra. It is that "decision" to stay which forms the subject-matter of this appeal.
It is relevant to observe that Carling has pend ing before the Trial Division of this Court, two actions, T-298-80 and T-4900-80, in which it alleges that the appellant and its registered users are infringing trade mark No. 185/40809. The defendants in each of those actions have denied the validity of registration No. 185/40809 on the ground of abandonment.
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stances that excuse such absence of use, the registration of such trade mark is liable to be expunged or amended accordingly.
(4) When the Registrar reaches a decision as to whether or not the registration of the trade mark ought to be expunged or amended, he shall give notice of his decision with the reasons therefor to the registered owner of the trade mark and to the person at whose request the notice was given.
(5) The Registrar shall act in accordance with his decision if no appeal therefrom is taken within the time limited by this Act or, if an appeal is taken, shall act in accordance with the final judgment given in such appeal.
(6) In this section, "Registrar" includes such person as may be authorized by the Registrar to act on his behalf for the purposes of this section.
At the hearing of the appeal before us, counsel for Carling as well as counsel for the Registrar submitted that the "decision" to stay the section 44 proceedings is not a decision from which an appeal lies under section 56 of the Trade Marks Act. Subsection 56(1) provides that:
56. (1) An appeal lies to the Federal Court of Canada from any decision of the Registrar under this Act within two months from the date upon which notice of the decision was dispatched by the Registrar or within such further time as the Court may allow, either before or after the expiry of the two months.
In support of this submission, counsel relied on the developing jurisprudence 2 in this Court on the meaning of the word "decision" as it is used in section 28 of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10. That jurisprudence is to the effect that the Federal Court of Appeal has juris diction to review under section 28 only final orders or decisions—that is—final in the sense that the decision or order in issue is the one that the tribunal has been mandated to make and is a decision from which legal rights or obligations flow. This jurisprudence makes it clear that the Court will not review the myriad of decisions or orders customarily rendered on matters which nor mally arise in the course of a proceeding prior to that final decision. In the submission of counsel, that jurisprudence should be applied to the word "decision" as used in subsection 56(1) and, there fore, since the "decision" under review does not meet the test of the cases as summarized supra in that it is not the one that the Registrar has been mandated to make under section 44 and since it is not a decision from which legal rights or obliga tions flow, there is, accordingly, no jurisdiction in the Trial Division to consider an appeal from that decision under subsection 56(1). While the section
2 For example see: National Indian Brotherhood, et al. v. Juneau, et al. (No. I), 119711 F.C. 66 (T.D.) at pp. 77-79; The Attorney General of Canada v. Cylien, [1973] F.C. 1166 (C.A.); British Columbia Packers Limited, et al. v. Canada Labour Relations Board et al., [ 1973] F.C. 1 194 (C.A.); In re Anti-dumping Act and in re Danmor Shoe Company Ltd., [1974] 1 F.C. 22 (C.A.); Richard v. Public Service Staff Relations Board, [1978] 2 F.C. 344 (C.A.); Canadian Air Line Employees' Association v. Wardair Canada (1975) Ltd., et al., [1979] 2 F.C. 91 (C.A.); Latif v. Canadian Human Rights Commission et al., [ 1980] 1 F.C. 687 (C.A.); Canadian Human Rights Commission v. British American Bank Note Company, [1981] 1 F.C. 578 (C.A.).
28 decisions may have some persuasive value, I point out that they cannot be decisive and binding where, as here, the word "decision" is used in a statutory appeal. A perusal of the section 28 cases makes it clear that an important consideration in those decisions was the undesirable consequences which could conceivably flow were the Court to allow section 28 applications in respect of the innumerable interlocutory matters arising in the course of a proceeding. In the Juneau case (supra), Jackett C.J. stated at page 78 of the report:
If, however, an interested party has a right to come to this Court under s. 28 on the occasion of every such decision, it would seem that an instrument for delay and frustration has been put in the hands of parties who are reluctant to have a tribunal exercise its jurisdiction, which is quite inconsistent with the spirit of s. 28(5).
Similar views have been expressed by the Court in subsequent decisions on section 28. What seems clear is that the cases on the meaning of "deci- sion" as used in the Federal Court Act have been decided with particular regard to the scheme of that Act. That is the correct approach, in my view, and is the approach which I think should be adopted in interpreting "decision" as it is used in the Trade Marks Act. In the case at bar, in a proceeding under section 44 of the Trade Marks Act, a "decision" is made which, it is said, is appealable under subsection 56(1) of that Act. In my view, the section 44 procedure is clearly intended to be a summary and expeditious one. That being so, it seems to me that a similar rationale to that adopted in the section 28 cases, should be applied to a "decision" under section 44 of the Trade Marks Act. However, I apply that rationale because it is consistent and compatible with the relevant sections of the Trade Marks Act and not merely because it forms the rationale of cases under the Federal Court Act. It is my opin ion that there may well be other statutes confer ring a statutory right of appeal where, because of the scheme of that statute, the word "decision" as used therein, may well have a different connota tion which requires it to be interpreted differently. In the context of section 44 and section 56 of the Trade Marks Act, however, it is my conclusion
that "decision" as used therein means the final decision of the Registrar under subsection 44(4), that is, his final decision as to whether or not the registration of the trade mark ought to be expunged or amended and does not include a "decision" such as this to stay the section 44 proceedings.
A similar approach was adopted by President Jackett of the Exchequer Court (as he then was) in the case of Hoffmann-La Roche Limited v. Delmar Chemicals Limited' when considering the Court's jurisdiction to entertain an appeal from a "decision" of the Commissioner of Patents under the Patent Act, R.S.C. 1952, c. 203. After consid ering the scheme of the Patent Act, the learned President held that the only "decision" appealable was the ultimate decision finally disposing of the application notwithstanding the fact that the Com missioner necessarily in the process of exercising his statutory powers was called upon to decide many preliminary questions. Furthermore, Thur- low J. (as he then was) had occasion to discuss a similar problem in the context of the Trade Marks Act, S.C. 1952-53, c. 49, in the case of f. K. Smit & Sons International Limited v. Packsack Dia mond Drills Ltd. 4 In that case, it was held that the decision of the Registrar under subsection 36(1) to advertise an application for registration of a mark was not a decision from which the applicant had a right of appeal. The words in subsection 55(1) of that Act giving a right of appeal "... from any decision of the Registrar under this Act ..." are identical to the wording of the present subsection 56(1).
Accordingly, I have concluded, for the above reasons, that the Trial Division was without juris diction to hear subject appeal under section 56 of the Trade Marks Act. This conclusion is sufficient to dispose of the appeal but in view of the fact that
7 [1966] Ex.C.R. 713—Note: This decision was followed by President Jackett in the case of Smith Kline & French Inter- American Corporation v. Micro Chemicals Limited, [1968] 1 Ex.C.R. 326.
° [1964] Ex.C.R. 226.
the Trial Division has in this case, as well as in the Skipper's cases (which the Registrar relied on here) expressed the view that the Registrar has jurisdiction to grant a stay, I consider this to be a situation where the Court should express a firm conclusion on that question since the only possible form of redress for the appellant might well be an application to the Trial Division for a writ of mandamus and since the matter of the Registrar's jurisdiction to order a stay was fully argued before us.
I approach this issue initially on the basis that a "tribunal" such as the Registrar of Trade Marks, since it is a creature of statute, has no inherent jurisdiction. 6 The power to grant a stay of any proceedings before the Registrar must be found either in the Trade Marks Act or in the Regula tions promulgated thereunder through express lan guage or through an "undeniable implication."' After perusing both the Act and the Regulations, I am unable to find any provisions which either expressly or by necessary implication, empower the Registrar to do what he did in this case. The Unfair Competition Act, R.S.C. 1952, c. 274, the predecessor to the present Trade Marks Act, con tained no simple procedure for removing unused trade marks from the register. Section 44 of the present Act sets up a code of procedure vesting in the Registrar jurisdiction to expunge from the register those marks not in use or to restrict their effect to those wares or services in association with which they have been used. The section does not contemplate a determination on the issue of aban donment but is merely a summary procedure whereby the registered owner of a mark is required to provide either some evidence of use in Canada or evidence of special circumstances that excuse absence of use. The evidence which the Registrar can consider is restricted by subsection 44(2) to an affidavit or declaration from the registered owner
5 Skipper's, Inc. v. Registrar of Trade Marks et al. (Federal Court, T-5863-79, judgment dated August 25, 1980).
6 To the same effect, see: Canadian Broadcasting Corpora tion et al. v. Quebec Police Commission, [1979] 2 S.C.R. 618 at p. 639, per Beetz J.
' See: Reid and David, Administrative Law and Practice (2nd ed. 1978), p. 303.
which makes it clear, in my view, that there is no intention that the Registrar reach a decision under section 44 as to abandonment. The sole question the Registrar had to decide under section 44 was whether the registered owner put forward a claim to user in Canada or to circumstances excusing non-user.'
President Jackett (as he then was) put the matter succinctly in the Noxzema case (supra) at page 97 of the reasons as follows:
... section 44 provides a means for clearing from the Registry registrations for which the owners no longer assert that there is any real foundation. An owner can avoid having any action taken against his registration by either a mere declaration of user or, if he admits non-user, by any reasonable explanation therefor.
Based on the scheme of section 44 as set forth supra, and on the limited purpose for which the section was enacted, and the clear intention of Parliament that the section 44 procedure be simple, summary and expeditious, I am not pre pared to imply a power in the Registrar to unduly prolong those proceedings by the imposition of a stay pending the outcome of Court litigation. The imposition of a stay in these terms makes it possi ble, and more than likely, that the stay will be quite lengthy. In my respectful view, such a conse quence was never intended when the section 44 procedure was added to the statute.
As noted earlier herein, the Registrar in order ing the stay in these proceedings relied on a deci sion of the Trial Division in the Skipper's case (supra). The reference relied on is to be found on page 7 of the reasons of Cattanach J. and reads as follows:
A court has an inherent jurisdiction to stay proceedings but the court always has a discretion whether or not to accede to an application for a stay.
See: The Noxzema Chemical Co. of Canada Ltd. v. Sheran Mfg. et al. (1968), 38 Fox Pat. C. 89 (Ex.Ct.) at pp. 96-97.
I accept that a like discretion is vested in the Registrar of Trade Marks and by virtue of subsection 37(9) in an opposition board.
As discussed supra, it is my respectful view that the Registrar has no inherent power to grant a stay, that such power could only be obtained through express statutory language or by neces sary implication from the statutory language used, and that neither of those circumstances are present here.
For the above reasons, it is my conclusion that the Registrar erred in granting the stay herein. In his reasons, the learned Trial Judge made remarks to the effect that the Registrar was not really granting a stay but was rather withholding his decision under consideration pending the outcome of the Federal Court litigation. However, the Reg istrar himself said that he was granting a stay and the effect of his order most certainly operated as a de facto stay. Furthermore, if the learned Trial Judge was correct in his characterization of what the Registrar really did in this case, then, in my view, those actions were improper since they resulted in an indefinite postponement of the deci sion required to be made under section 44 which amounts to a declining of jurisdiction by the Registrar. 9
In view of the conclusion reached earlier herein that the Trial Division was without jurisdiction to hear the appeal from the Registrar's "decision" under section 56 of the Trade Marks Act, it follows that this appeal must be dismissed. In light of the circumstances, however, I would not award any costs.
LE DAIN J.: I agree. KELLY D.J.: I concur.
'See: Julius v. The Right Rev. the Lord Bishop of Oxford et al. (1879-80), 5 A.C. 214 (H.L.). See also: Canadian Pacific Railway v. The Province of Alberta et al., [1950] S.C.R. 25 at p. 33.
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