Litigants Can’t Avoid Manual Search of Documents for Production

appmag0101-b2-4.jpg Air Canada et al. v. Westjet Airlines Ltd. et al. is evidently “the largest case of corporate espionage ever seen in Canada”. It will undoubtedly spawn many rulings as it proceeds through the courts and today’s is an interesting one.

Air Canada has sued Westjet for damages of more than $200 million. As one might expect in a case of that size, documentary production is a significant issue. Three weeks of discoveries are scheduled for June, 2006, but the parties are still fighting over what documents have to be produced and, more importantly, the method by which the parties have assembled their productions. This decision of Mr. Justice Ian Nordheimer addresses some of the issues of electronic production of documents that will probably arise more and more often in future.

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Childs v. Desormeaux: A Post-Mortem

Last Friday night, Wiliams McEnery held a small reception for Eric Willams and Jaye Hooper. As most readers will know, Eric and Jaye were the winning counsel in Friday’s Supreme Court of Canada ruling in Childs v. Desormeaux, the “social host liability” case. The members of their firm wanted to congratulate their colleagues at Friday’s get-together and we dropped in for a while.

First of all, Jaye Hooper and Jennifer Jolly (another WM lawyer) took us to task for not having posted on this blawg since April 21. We attributed this to Heather and Steve’s attendance at the Advocates’ Society conference in Ireland, but Jaye and Jennifer would accept no excuses.

(We had not even tried to scoop the competition with a commentary on the Supreme Court’s decision in Childs on Friday morning. How could we, when Jaye Hooper was busy writing a bulletin from inside the Supreme Court’s “lockup”, before the rest of us had even seen the decision? Besides, the Internet was soon buzzing with bulletins and commentaries of all sorts about the ruling.)

But now that the dust has settled (and to make it clear that we have not ceased publication of this blawg!), a few thoughts about the Childs case.

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Injured Boy Not “Buyer” of Bicycle, So Sale of Goods Act Doesn’t Apply

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 In Resch v. Canadian Tire et al., a 15 year old boy was seriously injured in a bicycle accident. He sued the manufacturer and the vendor of the bicycle. In an interesting ruling, the trial judge, Superior Court Justice Nancy Spies, held that the Sale of Goods Act did not apply to the case because the boy was not the one who had purchased the bicycle and did not, therefore, qualify as a “buyer” under the Act.

Justice Spies’ reasons touched on a number of issues that arise in the “no man’s land” where negligence law meets the Sale of Goods Act. For instance, Her Honour held that in claims for breach of implied warranty under s. 15 of the Sale of Goods Act, it is possible for the seller to argue for an apportionment of fault as between him and the buyer. That apportionment might be something quite different from an apportionment of fault in a tort claim, made under the Negligence Act. It is quite possible that both types of apportionment might have to be made in a single case, where claims have been advanced in both negligence and breach of warranty.

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Cavanagh Again Makes LEXPERT’s “Recommended” List of Commercial Insurance Lawyers

award.jpgFor the second consecutive year, Steve Cavanagh was one of a small group of eastern Ontario lawyers who were rated by LEXPERT magazine as “Recommended” in the field of “Litigation–Commercial Insurance”. The others were David Scott and Bruce Carr-Harris of Borden, Ladner, Gervais, and Pat Santini of Kelly Santini. Congratulations to all.

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Law Firm Entitled to $60,000 Fee Premium for Converting Client’s $1M Liability Into $150,000 Profit

premium.jpgThe law firm of Kramer Henderson had a very good day today. It had appealed an assessment officer’s refusal to allow a $60,000 fee premium from their former client. Superior Court Justice John Belleghem allowed the firm’s appeal and found that Kramer Henderson was entitled to its premium. In his reasons, he lavishly praised the “wisdom”, “exceptionality in negotiating skills” and “exceptional skill and ability” of the law firm, in achieving a “result…beyond the client’s wildest expectation”.

In Kramer Henderson v. Salgado et al., the client, Salgado, was in the business of selling “Monte Cristo” cigars over the Internet to U.S. customers. In doing so, it was violating a copyright on the name “Monte Cristo”, held by a U.S. company called “Altadis”.

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Late Reporting Defeats Claims Under Two Claims-made Policies

notice.gif In Brelih et al. v. The St. Paul Companies Inc. et al., a decision of Madam Justice Joan Lax of the Ontario Superior Court, it was held that the insured’s delay in reporting a claim resulted in there being no coverage under either of two claims-made policies.

Prior to action having been commenced against the insured Brelih, he had received emails from the claimants’ solicitors, indicating that the claimants were thinking about commencing an action against Brelih. (The claim seems to have something to do with a real estate transaction.)

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C.A. Narrows CGL’s “Your Work” Exclusion

exclusion.jpgmid.jpg In an important decision released this afternoon, the Court of Appeal held that the “your work” exclusion in a CGL policy (often referred to as a “business risk” exclusion) did not apply where the complained-of work had been performed by the insured’s subcontractor. In the course of its reasons, the C.A. made some interesting observations about CGL policies whose effects are likely to be felt beyond this case. The court made it clear that coverage is to be decided in accordance with the wording of the policy, not on the basis of “general principles” of insurance law.

In Bridgewood Building Corporation v. Lombard General Insurance Company of Canada, Lombard insured a general contractor. Lombard had denied indemnity to the contractor under a CGL policy, for a claim relating to the cost of repairing a number of new homes which had been built by the insured. The homes contained structural defects which related to defective concrete. The concrete had been supplied by a subcontractor.

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Tortfeasor in One Accident Entitled to Claim Contribution from Tortfeasor in Second Accident? We Don’t Think So.

Justice Gerald Day has ruled that a release given by a plaintiff who had settled a claim arising out of one motor vehicle accident also applies to a second action brought by the same plaintiff, consequent upon another car accident. The decision is somewhat perplexing, as it suggests that a tortfeasor in one accident can properly seek contribution or indemnity from another tortfeasor involved in a completely separate accident. That is not our understanding of the law.

[For purposes of clarification, after originally posting about this case, we were contacted by the insurer of one of the parties. She, in turn, had heard from many claims personnel, excited at the prospect of being able to claim over against tortfeasors who had injured the plaintiff in another accident. She made it clear that that issue had not been argued before Justice Day. We agree, it clearly had not been. However, we still think that he proceeded on the assumption that such a procedure was possible. It doesn’t look like anyone corrected him. But readers should not conclude that the law of contribution and indemnity has changed as a result of this case. We don’t think it has. The balance of our original post appears below.]

In Drapeau v. Heald, the plaintiff was involved in four separate accidents, in 1998, 2000, 2002 and 2003. She brought separate actions in relation to the first three accidents. Today’s decision was given in the action arising out of the first accident.

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Insurer Wins BI Appeal on All Three Grounds

Jackpot.bmp In a decision that will be of great interest to the insurance industry, the Court of Appeal ordered a new trial in a personal injury action. The defence won on all three grounds of appeal:  (a) the trial judge’s refusal to admit surveillance videotape; (b) inflammatory comments made in the course of the closing address to the jury by plaintiff’s counsel;  and (c) the trial judge’s failure to provide the jury with a balanced view of the defence medical evidence.

Landolfi v. Fargione arose out of a motor vehicle accident. The defendant had gone through a red light and collided with the plaintiff’s vehicle. At trial, she did not deny that she had been negligent but she contended that the plaintiff had also been negligent. Damages were in issue too.

The plaintiff’s complaints were of neck and back pain. There was also evidence of a mild closed head injury and chronic pain syndrome.

The defence medical evidence was very strongly in the opposite direction. Two defence doctors actually expressed the opinion that the plaintiff was malingering. One said the plaintiff’s was “an Academy Award performance”. Continue reading

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Court Finds Duty Owed to Child Before Conception

In Paxton v. Ramji, a major decision released today, Madam Justice Margaret Eberhard of the Ontario Superior Court has found that a physician owed a duty of care to a child who had not yet been conceived, let alone born. It is the first such case in Canada.

The action was brought by the parents of a child who was born with abnormalities. She had been conceived after her mother began taking medication for acne. The treatment, “Accutane”, was prescribed by the woman’s family doctor.

The abnormalities afflicting the child, Jaime, were described by Justice Eberhard as follows: “At birth she had a right facial palsy, seizures, generalized hypotonia, megalencephaly of the left occipital lobe of her brain, prominent dysmorphic features, hearing loss, anotia – an absent right ear and microtia – a malformed left ear.”

Justice Eberhard undertook a detailed assessment of damages and of the facts relevant to the liability issue. We have not summarized this aspect of the decision here. Instead, we have focused on her legal analysis of the cause of action, which the defence characterized as one for “wrongful life”.

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