Judgments

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T-24-75
Fjord Pacific Marine Industries Ltd. (Appellant)
v.
The Registrar of Trade Marks (Respondent)
and
The Oshawa Group Limited (Respondent/Interve- nant)
Trial division, Mahoney J.—Ottawa, April 4 and 10, 1975.
Trade marks—Appeal—Registrar granting respondent/ intervenant extension of time to oppose appellant's applica- tion—Whether an administrative action not subject to judicial review—Whether Registrar made prerequisite determination that failure to apply within one month from advertisement of application not reasonably avoidable—Trade Marks Act, R.S.C. 1970, c. T-10, ss. 37(1), 38(2), 46(1) and (2) and 56.
Appellant appeals a decision of the Registrar of Trade Marks granting respondent/intervenant an extension of time to oppose appellant's application which had been filed January 31, 1972, and advertised November 1, 1972. Respondent/intervenant first notified the Registrar of its interest November 1, 1974.
Held, allowing the appeal, section 37(1) of the Trade Marks Act provides a one-month time limit after advertisement of an application for filing a statement of opposition. Under section 46(2), the Registrar was obliged to determine whether the failure to apply within the time limit "was not reasonably avoidable". The Court, in similar instances, has held that such a decision was amenable to judicial review. When the statute prescribes a particular finding of fact as a prerequisite to the exercise of discretion, that fact must be found. Oshawa's reason for failing to apply in November 1972 was that it had no interest or basis for so doing. Its subsequent acquisition of an interest in and basis for opposing should not have been con sidered. The Registrar did not make the prerequisite determi nation of fact; there were not before him representations of fact which, had they been considered, could have led to the determination.
Berback Quilting Ltd. v. The Registrar of Trade Marks [1958] Ex.C.R. 309; Centennial Grocery Brokers Inc. v. The Registrar of Trade Marks [1972] F.C. 257; In re Worldways Airlines Ltd. and the Canadian Transport Commission [1974] 2 F.C. 597, followed.
APPEAL. COUNSEL:
W. C. Kent for appellant. P. B. Annis for respondent.
S. Trachimovsky for respondent/intervenant. SOLICITORS:
Burke-Robertson, Chadwick and Ritchie, Ottawa, for appellant.
Deputy Attorney General of Canada for respondent.
Malcolm S. Johnston, Toronto, for respond- ent/intervenant.
The following are the reasons for judgment rendered in English by
MAHONEY J.: This is an appeal, pursuant to section 56 of the Trade Marks Act, from a deci sion of the respondent, the Registrar of Trade Marks (herein called "the Registrar"), granting the respondent/intervenant, The Oshawa Group Limited (herein called "Oshawa"), an extension of time, pursuant to section 46(2) of the Act, to oppose the appellant's application Serial No. 349,856.
On January 31, 1972 the appellant filed with the Registrar an application to register the trade mark "Dutch Boy" which it had used in connec tion with pickled herring since September, 1968. The application was advertised in the Trade Marks Journal of November 1, 1972. A statement of opposition, not in issue in this appeal, was filed and the ensuing year was occupied by the various steps consequent upon that opposition leading to a request by the appellant on November 1, 1973 that the Registrar hold an oral hearing. The Registrar advised that such could not be held within the next eight or ten months. The appellant reiterated its request for the oral hearing, paid the required fee and, on December 14, 1973 was advised that the hearing could not likely be held for six months. On August 28, 1974, the appellant was advised that "the hearing may not be held before another period of 8 or 10 months".
On November 1, 1974—two years to the day after the advertisement of the appellant's applica- tion—Oshawa, for the first time, notified the Reg istrar of its interest in the proceedings and request ed an extension of the time allowed them to file a statement of opposition. Oshawa had become interested as the result of the acquisition of another business concern which had not, itself,
opposed the application. Only after acquiring the other concern and looking into the possibility of itself obtaining registration of the trade mark "Dutch Boy" did Oshawa become aware of the application. The Registrar decided to grant Oshawa the extension and it is that decision that is appealed to this Court.
Relevant provisions of the Act follow:
37. (1) Within one month from the advertisement of an application, any person may, upon payment of the prescribed fee, file a statement of opposition with the Registrar.
38. (2) The Registrar shall not extend the time for filing a statement of opposition with respect to any application that has been allowed.
46. (1) If, in any case, the Registrar is satisfied that the circumstances justify an extension of the time fixed by this Act or prescribed by the regulations for the doing of any act, he may, except as in this Act otherwise provided, extend the time after such notice to other persons and upon such terms as he may direct.
(2) An extension applied for after the expiry of such time or the time extended by the Registrar under subsection (1) shall not be granted unless the prescribed fee is paid and the Registrar is satisfied that the failure to do the act or apply for the extension within such time or such extended time was not reasonably avoidable.
Section 37(1) provides a one-month time limit after advertisement of an application within which a statement of opposition may be filed. It is to be noted that anyone at all is entitled to file a state ment of opposition; the section does not limit opposition to persons claiming an interest such as would be necessary, under section 57, to give that person status to seek to strike but or amend an entry in the register once an application was allowed. The only statutory bar to the grant of the extension, that contained in section 38(2), is not in play. In considering Oshawa's application for an extension of time, the Registrar had clearly to resort to subsection (2) rather than subsection (1) of section 46. In other words he was obliged to make, not the rather general determination that "the circumstances justify an extension of the time fixed" by the Act, called for by section 46(1), but the more particular determination that, in this case, the failure to apply for the extension within
the first month after publication "was not reason ably avoidable", called for by section 46(2).
Counsel for the Registrar raised, but did not press, the question of whether the decision to grant an extension of time under section 46(2) is a "decision" within the meaning of section 56(1). He suggested that an application for a writ of prohibition might, in the circumstances, have been the appropriate procedure. No argument was pre sented in support of this proposition. In effect, it was raised and abandoned and I make no decision on it.
The Registrar's fundamental proposition is that the granting of an extension of time in such cir cumstances is a purely administrative action not subject to judicial review whether by appeal under section 56(1) or otherwise. That proposition has not, so far as I am aware, been dealt with by the Courts; however, the clear inference to be drawn from decisions that have considered extensions of time in such circumstances is against it. In Ber - back Quilting Ltd. v. The Registrar of Trade Marks', the appellant unsuccessfully challenged the Registrar's refusal of an extension in an appeal such as this. In Centennial Grocery Brokers Inc. v. The Registrar of Trade Marks 2 , the applicant, again unsuccessfully, sought to quash an extension, similarly granted, by prohibition. In each case, the Court clearly considered that the Registrar's deci sion was amenable to judicial review although it declined, in the result, to interfere with it.
In the Centennial case, Heald J., at page 261, held:
The Registrar, at the time he made his decision to grant an extension of time, had all the circumstances before him from which he could conclude that the error or oversight "was not reasonably avoidable" as contemplated in section 46(2).
I should not interfere with the Registrar's exercise of discre tion unless he was clearly wrong ....
' [1958] Ex.C.R. 309. 2 [1972] F.C. 257.
That is a statement of the law with which I fully agree. It clearly recognizes the principle that where the statute prescribes a particular finding of fact as a prerequisite to the exercise of discretion, that fact must be found.' The administrative au thority must ask itself the question that the statute says must be answered before it can proceed to make the decision. In this case the Registrar, before granting the extension of time, was required to be satisfied, in other words to find as a fact, that Oshawa's failure to apply for the extension within a month of the advertisement of appellant's application in the Trade Marks Journal was not reasonably avoidable.
The circumstances upon which such a determi nation might have been based are set forth in Oshawa's letter to the Registrar dated October 29 and received by him November 1. There was no other relevant material before him. The full text follows:
Request is respectfully made on behalf of the Oshawa Group Limited for a brief extension of the time allowed for filing a statement of opposition to the captioned trade mark application S.N. 349,856—DUTCH BOY—advertised in the November 1, 1972 issue of the Trade Marks Journal and presently under opposition by Vancouver Shellfish and Fish Company Limited.
The proposed opponent, The Oshawa Group Limited, has recently succeeded to the business and trade mark rights of The Dutch Boy Food Market which has been in operation under the trade name since 1954.
Upon its acquisition of the interest in this company, the proposed opponent instructed its undersigned Trade Marks Agent to proceed with applications for registration of the word—DUTCH BOY—as its trade mark, not only for services involved in the operation of supermarkets but also as its trade mark for a long list of private-branded goods normally sold in supermarkets.
A routine availability search made in the Canadian Trade Marks Office on July 17 brought to light prior applications S.N. 349,683 and S.N. 349,856 for registration of the same trade mark. Copies of these applications were then ordered from the Trade Marks Office on July 22 but, unfortunately, were not received until October 1, at which time it was noted that said trade mark application S.N. 349,856 is still under opposition.
At the time that this application was advertised in 1972, the proposed opponent had no interest in the trade mark—DUTCH BOY—. However, it does have a very keen interest in such trade
' In re Worldways Airlines Ltd. and the Canadian Transport Commission [1974] 2 F.C. 597.
mark at the present time and, moreover, in view of its substan tial priority in that trade mark, it appears to have a very solid and justifiable basis for opposition to the application.
In these circumstances, it is respectfully submitted that this is an appropriate ground for granting The Oshawa Group Limited, the proposed opponent, an extension of time for filing opposition to application S.N. 349,856 aforesaid and request for such extension of time is respectfully reiterated.
The applicable fee of ten dollars covering this request is herewith remitted.
The Registrar's reply, dated November 8, sets forth the decision that is the subject of this appeal and the findings of fact he made in connection with that decision; it sets them forth in full in so far as the record discloses them.
We acknowledge receipt of your letter dated October 29, 1974.
In view of the fact that your client instructed you to proceed with an application for the registration of DUTCH BOY in relation to the services involved in the operation of supermar kets as well as wares to be sold under a private brand label DUTCH BOY, and as application number 349,356 may constitute an impediment to such an application it is in the interest of both parties that the rights of the parties be determined in this opposition proceeding.
An extension of time until December 2, 1974 is granted in which to file a Statement of Opposition in duplicate. This extension of time in which to oppose has been granted on the understanding that the opponent will meet all the time limits set under the Trade Marks Act with respect to oppositions.
Oshawa had as much right to oppose the application in November, 1972 as it had in November, 1974. The only reason for its failure to do so is that it had no interest in doing so nor did it feel it had any basis for doing so. The interest in opposing the application and the perceived basis for opposition were acquired "recently".
I see no reasonable way of construing the requirement of section 46(2), that the Registrar be satisfied that the failure to apply for the extension of time within a month of the advertisement was not reasonably avoidable, except that he is required to so satisfy himself with reference to facts that existed during that month. I do not see how a circumstance that arose after the month had passed can, in any way, be relevant to the avoida- bility, reasonable or otherwise, of an omission that occurred during that month. Oshawa's subsequent acquisition of an interest in and perceived justifi able basis for opposing the application ought not to
have been considered by the Registrar. Likewise, the fact of its subsequent application to register the same trade mark is irrelevant.
If I am right in holding that it is only with reference to facts that pertained when Oshawa might have opposed, but omitted to oppose, the application that the Registrar can determine that the omission was not reasonably avoidable, then the circumstances to which Oshawa could properly refer the Registrar, in seeking the extension, are either its own disinterest during the month in question or circumstances that existed that month of which its predecessor in title to the rights of the Dutch Boy Food Market might have referred the Registrar. As to the latter, there is no evidence and, as to the former, I have no hesitation in finding that it would be clearly wrong for the Registrar to find that Oshawa's disinterest in the matter, and nothing more, supported an exercise of his discretion in favour of an extension.
The Registrar did not, expressly, make the pre requisite determination of fact. There is nothing in his decision that leads me to infer that he even considered it, much less made it. I am satisfied that there were not before him the representations of fact on which, had he accepted them fully, he could reasonably have arrived at that determina tion.
Oshawa was joined as respondent/intervenant by order granted on its own motion. That motion was opposed by the appellant. I cannot see that Oshawa's joinder as a party in any way affected the costs of the appeal itself.
The appeal is allowed. The appellant is entitled to recover its costs of the appeal from the Regis trar. It is entitled to recover its costs, if any, with respect to the joinder of Oshawa as respondent/ intervenant from Oshawa.
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