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T-171-77
Peter Rasins (Plaintiff)
v.
Foodcorp Limited and Wilf Johnsen (Defendants)
Trial Division, Mahoney J.—Toronto, January 21; Ottawa, January 25, 1980.
Practice — Examination for discovery — Corporate defend ant — Order sought to compel attendance of appropriate corporate officer for examination for discovery — Appropriate officer now living abroad — Whether or not Court has author ity to make order sought — Whether or not defendant must produce this officer for examination — Federal Court Rules 447, 465.
Lido Industrial Products Ltd. v. Teledyne Industries, Inc. [1979] 1 F.C. 310, distinguished.
APPLICATION. COUNSEL:
P. H. Mandell for plaintiff.
C. L. Sarginson for defendants.
SOLICITORS:
Mandell, James, Toronto, for plaintiff. Rogers, Bereskin & Parr, Toronto, for defendants.
The following are the reasons for order ren dered in English by
MAHONEY J.: When this matter first came before the Court, the plaintiff's application was dismissed without prejudice to its right to reapply when it had complied with the requirements of Rule 447, which is, under Rule 465(3), a prerequi site to any order requiring an adverse party to attend for examination for discovery. The plaintiff now reapplies for an order requiring the corporate defendant to produce its Chairman of the Board, Richard Maurin.
I am entirely satisfied that Maurin is the proper officer to be examined. The problem is that since the action was commenced, Maurin has moved from Canada to Great Britain. The corporate defendant cites the Court of Appeal decision in Lido Industrial Products Limited v. Teledyne
Industries, Inc.' in support of its position that the Court has no authority to make the order sought.
That case dealt with the particular situation of assignors of patents sought to be examined under Rule 465(5). Such persons are not parties to the action and, while the Rule refers to their examina
tion as "examination for discovery" it does not, as the then Chief Justice observed commencing at page 313, "fall within what is ordinarily thought of as an examination for discovery". He went on [at pages 313-314]:
It is not an examination for discovery of one party by another; it is a pre-trial questioning of a potential witness, and the only person who can be questioned thereunder is the assignor of the property right that is the subject of the litigation, who is subject to being questioned whether or not he is an officer or other employee of the opposing party.
The mode of enforcing attendance for examination of a person subject to questioning by virtue of Rule 465(5) is a subpoena (Rule 465(9)); as such a person is not necessarily under the control of the opposing party, that party does not become subject to having his defence struck out or to having his action dismissed by reason of such person failing to attend and answer as required. (Rule 465(20).) Presumably, Rule 465(12) contemplates the Court authorizing such an examination taking place outside Canada but one does not find anything in the Rules authorizing the Court to order such a person to appear for examination inside or outside Canada; and any such author ity would not be expected having regard to the provision for a subpoena in Canada and the Court's inability to issue orders or other process having effect outside its geographical jurisdiction. (See McGuire v. McGuire [1953] O.R. 328.) In other words, there is an implied limitation, as far as Rule 465 is concerned, on the ambit of Rule 465(5) in that it cannot operate where the person to be examined is outside Canada and cannot be made the subject of a subpoena issued out of a Canadian Court.
This is quite a different situation. Its only unusual aspect is Maurin now resides outside Canada. This application does involve the exami nation of a party to the action which, because it is a corporation, must, of necessity, be examined, under Rule 465(1)(b), through the medium of an officer. Such a person is, in this context, "under the control" of the corporation and, if it does not produce him, it is subject to having its defence struck out pursuant to Rule 465(20).
I [1979] 1 F.C. 310.
The attendance of an assignor for examination under Rule 465(5) can only be enforced by a subpoena under Rule 465(9). However, Rule 465(8) expressly contemplates that the attendance of an officer for examination under Rule 465(1)(b) may be enforced by service of an appointment issued under Rule 465(7) and that, by leave, service of the appointment may be effect ed upon the corporate party's solicitor, rather than the officer himself.
ORDER
The plaintiff may issue an appointment for the examination for discovery of the corporate defend ant under Rule 465(7), naming Richard Maurin as the individual to be questioned. The place of the examination will be located at or near Toronto, Ontario, and the date not earlier than April 1, 1980. The appointment may be served on the corporate defendant's solicitor under Rule 465(8). Appropriate conduct money will include the cost of a round trip economy air fare between London, England and Toronto, Ontario, via Air Canada, and the sum of $100 per day for each day it is estimated Maurin will necessarily be in Toronto for the examination including a clear day before the date upon which the examination is to com mence. The plaintiff will be entitled to an account ing for the conduct money paid upon taxation of costs of the action.
The plaintiff is entitled to costs of this application.
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