Judgments

Decision Information

Decision Content

T-6143-79
Floyd M. Baslow (Plaintiff) v.
Fabri Trak Canada Limited, Avron Isadore Shore and Gauvreau, Beaudry Ltd. (Defendants)
Trial Division, Jerome A.C.J.—Toronto, March 17; Ottawa, March 28, 1980.
Practice — Application to strike out pleadings — Parties — Sentence in paragraph 18 of statement of claim struck out as unrelated to circumstances giving rise to cause of action — No reasonable cause of action shown against defendant Shore merely being director of company — Question raised as to suitability of plaintiffs use of the word "infringement" with respect to unregistered trade mark — Trade Marks Act, R.S.C. 1970, c. T-10, s. 20.
Alliance Tire & Rubber Co. Ltd. v. Alliance Tire & Rubber Co. of Canada Ltd. [1972] F.C. 333, followed.
APPLICATION. COUNSEL:
R. Uditsky for plaintiff.
I. Goldsmith, Q.C. for defendants.
SOLICITORS:
Greenblatt, Godinsky & Uditsky, Montreal, for plaintiff.
Immanuel Goldsmith, Q.C., Toronto, for defendants.
The following are the reasons for order ren dered in English by
JEROME A.C.J.: This is an application by coun sel for the defendants, Fabri Trak Canada Limited and Avron Isadore Shore, for an order:
(1) striking out the statement of claim as against the defendant Avron Isadore Shore on the ground that it discloses no reasonable cause of action as against the defendant;
(2) striking out
(i) the last sentence of paragraph 18; and
(ii) paragraph 19
of the statement of claim on the ground that they disclose no reasonable cause of action;
(3) striking out the following portions of the prayer for relief, viz.:
(i) paragraph (b);
(ii) the words "from infringing the Plaintiffs rights in the said trade mark `FABRI TRAK' and ordering them, and each of them, to discontinue using the said trade mark `FABRI TRAK' in association with wares not emanating from the Plaintiff," in paragraph (d);
(iii) paragraph (e);
(iv) the words "and for the infringement of Plaintiffs rights in the said trade mark `FABRI TRAK' " in paragraph (i);
(4) such further or other order as may seem just;
(5) the costs of this application.
It is clear that the last sentence of paragraph 18 of the statement of claim in its present form does not relate to the circumstances which give rise to this action and it must be struck out.
It is equally clear to me that the statement of claim in its present form does not disclose a reasonable cause of action against the defendant Avron Isadore Shore. The sense of paragraph 21 of the statement of claim is that the defendant Fabri Trak Canada Limited managed all of the corporation's activities and so was the director of those acts which form the subject matter of this action. The very clear language of Heald J. in Alliance Tire & Rubber Co. Ltd. v. Alliance Tire & Rubber Co. of Canada Ltd. [ 1972] F.C. 333, leaves no doubt that this sort of allegation in itself falls short of a cause of action against a corporate director.
In line 5 of paragraph 21 of the statement of claim, with the following words: "as director of the said actions of the said Defendant hereinabove alleged", the plaintiff may be attempting to bring himself within the frequently quoted language of Lord Buckmaster in Rainham Chemical Works, Limited (In Liquidation) v. Belvedere Fish Guano Company, Limited [1921] 2 A.C. 465 at 476:
If the company was really trading independently on its own account, the fact that it was directed by Messrs. Feldman and Partridge would not render them responsible for its tortious acts unless, indeed, they were acts expressly directed by them.
but even if I extend the necessary generosity of interpretation, the plaintiff remains in difficulty because of the failure, exactly as in Alliance Tire & Rubber Co. Ltd. (supra), to allege any facts whatsoever in the statement of claim upon which a judgment could be based against the defendant Shore.
I am not able to accept the third contention of counsel for the defendant that since the trade mark in issue is unregistered and since actions for infringement are established by section 20 of the Trade Marks Act, R.S.C. 1970, c. T-10, only in respect to registered trade marks, this plaintiff should be by this order prohibited from the use of the words "infringement in the rights of the Plain tiff in the said trade mark". Rights exist in trade marks whether registered or unregistered and while the use of the word "infringement" when relief is sought in respect to an unregistered trade mark may tend to blur the lines between the two kinds of claims, I am not able to find any authority which prohibits a plaintiff from describing a griev ance as an infringement of the plaintiff's rights in the trade mark or from incorporating that ter minology in the prayer for relief. Since the defend ant is to succeed on the first two grounds, the plaintiff may wish to re-examine the choice of language in respect to this third matter but I am unable to order that the statement of claim be purged of the term "infringement" simply because the trade mark is unregistered.
ORDER
The words "The Defendants are thus passing off other wares as and for those ordered or requested" are hereby struck out from paragraph 18 of the statement of claim and the statement of claim is hereby struck out against the defendant Avron Isadore Shore. The plaintiff shall have thirty days within which to file and serve an amended state ment of claim. The defendants shall have their costs of this motion.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.