Judgments

Decision Information

Decision Content

T-2019-85
Avant Incorporated, National Business Systems Inc. and National Business Systems Inc. (Plain- tiffs)
v.
The Queen in right of Ontario (Defendant)
INDEXED AS: AVANT INC. V. R.
Trial Division, Collier J.—Toronto, November 4, 1985; Ottawa, Feburary 6, 1986.
Federal Court jurisdiction — Trial Division — Motion to strike patent infringement action against provincial Crown — Plaintiff contending s. 5 of Proceedings Against the Crown Act, subjecting Crown to liability in tort as if 'person", bringing provincial Crown within ambit of s. 57 of Patent Act
— S. 57 imposing liability on any "person" — Motion allowed
— Court not having jurisdiction over provincial Crown — Liability to suit confined to courts of Ontario — Legislative provision required permitting suits based on s. 5 against Ontario in Federal Court — Proceedings Against the Crown Act, R.S.O. 1980, c. 393, s. 5 — Patent Act, R.S.C. 1970, c. P-4, ss. 56 (as am. by R.S.C. 1970 (2nd Supp.), c. 10, s. 65), 57
— Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 20.
Crown — Prerogatives — Motion to strike patent infringe ment action against provincial Crown allowed — Provincial legislation removing common law provincial Crown immunity from tort liability but not clothing Federal Court with juris diction — Proceedings Against the Crown Act, R.S.O. 1980, c. 393, s. 5.
Patents — S. 57 of Patent Act (imposing liability on any "person"), together with s. 5 of Proceedings Against the Crown Act, not giving Federal Court jurisdiction in action for patent infringement against provincial Crown — Patent Act, R.S.C. 1970, c. P-4, s. 57 — Proceedings Against the Crown Act, R.S.O. 1980, c. 393, s. 5.
CASES JUDICIALLY CONSIDERED APPLIED:
Union Oil Co. of Canada Ltd. v. R. in right of Canada et al., [1976] 2 S.C.R. v; (1977), 72 D.L.R. (3d) 82; affg. [1976] 1 F.C. 74; (1977), 72 D.L.R. (3d) 81 (C.A.); affg. [1974] 2 F.C. 452 (T.D.).
COUNSEL:
J. Macera for plaintiffs.
J. Polika, Q.C. and D. Dukelow for defendant.
SOLICITORS:
Macera & Jarzyna, Ottawa, for plaintiffs.
Deputy Attorney General of Ontario, Toronto, for defendant.
The following are the reasons for order ren dered in English by
COLLIER J.: This action is for patent infringe ment against the defendant, the Queen in right of Ontario.
The present motion is by the defendant to strike out the action, on the grounds this Court has no jurisdiction over the Ontario provincial Crown.
For the purposes of this motion, the facts are as set out in the statement of claim.
The first plaintiff is the owner of a patent. The other plaintiffs are licensees. The patent relates to a card envelope utilized in the production of lami nated data cards, capable of being laminated to gether. Further details are unnecessary. A com pany, not a party to the action in this Court, Polaroid Corporation, is said to be threatening to sell to the defendant laminated data cards alleged to infringe the patent. The impugned cards are to be used by the defendant in the manufacture, sale, and issue of driver's licences (a new licence, including a photograph of the holder). The acts of the defendant are alleged to infringe various claims of the patent. The usual injunctive relief is claimed, as well as damages, or an accounting of profits.
There is no doubt this Court has concurrent jurisdiction, with the courts of the provinces, to hear actions for patent infringement: see the Fed eral Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 20, and the Patent Act, R.S.C. 1970, c. P-4, s. 56 (as am. by R.S.C. 1970 (2nd Supp.), c. 10, s. 65).
Section 57 of the Patent Act imposes liability on "Any person who infringes a patent...." The generally accepted view seems to be that infringe ment of a patent is a tort.
The essential issue between the parties, on this motion, is the application of the Proceedings Against the Crown Act, R.S.O. 1980, c. 393. Sec tion 5 provides:
5.—(1) Except as otherwise provided in this Act, and not withstanding section 11 of the Interpretation Act, the Crown is subject to all liabilities in tort to which, if it were a person of full age and capacity, it would be subject,
(a) in respect of a tort committed by any of its servants or agents;
(b) in respect of a breach of the duties that a person owes to his servants or agents by reason of being their employer;
(c) in respect of any breach of the duties attaching to the ownership, occupation, possession or control of property; and
(d) under any statute, or under any regulation or by-law made or passed under the authority of any statute. (2) No proceedings shall be brought against the Crown under clause (1)(a) in respect of an act or omission of a servant or agent of the Crown unless proceedings in tort in respect of such act or omission may be brought against that servant or agent or his personal representative.
"Crown" means Her Majesty the Queen in right of Ontario.
The plaintiffs contend the subjection of the Crown to liability in tort, as if it were a "person", brings it within the ambit of section 57 of the Patent Act; this Court has jurisdiction to hear infringement actions against persons.
For the defendant, it is said the Ontario legisla tion is insufficient to give this Court jurisdiction over the provincial Crown. Union Oil Co. of Canada Ltd. v. The Queen, [1974] 2 F.C. 452 (T.D.); affd [1976] 1 F.C. 74; (1977), 72 D.L.R. (3d) 81 (C.A.); appeal dismissed by the Supreme Court of Canada [1976] 2 S.C.R. v; (1977), 72 D.L.R. (3d), at page 82, was referred to. Certain other cases were also cited.
In the Union Oil case, there was, at that time, no provincial legislation comparable to the Ontario legislation relied on here. I set out the decision of
the Federal Court of Appeal [at pages 75-76 F.C.; at pages 81-82 D.L.R.] as well as the note of the judgment given by the Supreme Court of Canada [at page 82 D.L.R.]:
The following are the reasons for judgment of the Court delivered orally in English by
THURLow J.: We have decided not to call on counsel for the respondents. At the same time our taking this course should not be interpreted as reflecting any disrespect for the very able and comprehensive argument addressed to us by Mr. Dickerson.
We do not necessarily adopt the reasons of the learned Trial Judge and in particular we do not adopt his view that fraud or deceit are necessary to a claim founded on subsection 70(1) of the Excise Tax Act. But we are not persuaded that he erred in striking out the claim against the Crown in right of the Province of British Columbia.
The jurisdiction of the Federal Court is entirely statutory and, accepting that it lies within the powers of the Parliament of Canada, when legislating in a field within its competence, to give the Federal Court jurisdiction to implead the Crown in right of a province, we do not think any of the statutory provisions to which we were referred, or any others of which we are aware, authorize the Court to entertain a proceeding at the suit of a subject against the Crown in right of a province.
The provisions of the Federal Court Act conferring jurisdic tion on the Court by reference to subject matter are, without doubt, broadly expressed but we think that section 16 of the Interpretation Act, though somewhat reworded since the judg ment of the Privy Council in In re Silver Brothers Limited [1932] A.C. 514, and the interpretation put upon that provi sion, as it then was, by that judgment, coupled with the specific definition and references in the Federal Court Act to the Crown in right of Canada are sufficient to show that the traditional immunity of the Crown in right of the provinces from suit in its courts was not intended to be abrogated by the general descriptions of subject matter of jurisdiction in the Federal Court Act.
It should not be taken that we are not sympathetic to the unfortunate position in which the appellant finds itself but we are of the opinion that the Court is without jurisdiction to entertain the claim against the Crown in right of the Province of British Columbia and that the appeal accordingly fails and must be dismissed.
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NOTE: An appeal from the above decision to the Supreme Court of Canada was dismissed (Laskin, C.J.C., Martland, Judson, Ritchie, Spence, Pigeon, Dickson, Beetz and de Grand - pré, JJ.) December 9, 1976. The following judgment was delivered orally for the Court by
LASKIN, c.j.c.: We do not need to hear the respondents or the intervenor. We are all of the opinion that the appellant has failed to show any ground of jurisdiction in the Federal Court over the Crown in right of British Columbia in this case. It is unnecessary therefore to deal with the question of that Crown's
immunity. The appeal accordingly fails and will be dismissed with costs to the Crown in right of British Columbia. There will be no order as to costs in favour of the Crown in right of Canada or of the intervenor, the Attorney-General of Ontario.
I find the question before me a difficult one. Hogg, Constitutional Law of Canada, 2nd ed. (Toronto: Carswell, 1985), at pages 221-223 and pages 227-240 deals with the effect of the Ontario legislation, and similar provisions found in statutes in the other provinces. But there is, understand ably, no discussion of, say, jurisdiction of courts of one province over the Crown in the right of another province, or of the jurisdiction of this Court over a provincial Crown.
I have concluded the Ontario legislation, with out more, does not clothe this Court with jurisdic tion to hear this action against this particular defendant. The statute removes the former common law provincial Crown immunity from lia bility in tort, and imposes liability, in certain cases, as if the Crown were an ordinary person. The legislation permits the Ontario Crown to be sued in those situations. But, in my view, the liability to suit is confined to the courts of the Province of Ontario. For the provincial Crown to be sued in this Court, there must, as I see it, be some legisla tive provision permitting suits, based on section 5, to be brought against Ontario in the Federal Court.
The motion to enter a conditional appearance is allowed, as well as the motion to strike out the action. Costs will be against the plaintiffs.
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