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T-4620-81
Saas Advertising, Inc. (Plaintiff) v.
J. Breed Clothing, Inc. and Algo Industries, Ltd. (Defendants)
Trial Division, Cattanach J.—Ottawa, December 15 and 21, 1981.
Practice — Order for service out of the jurisdiction — Motion to rescind an ex parte order granting leave to serve the applicant ex juris and to set aside the service of the notice of the statement of claim so served — Order does not specifically state in which place or country the notice of the statement of claim may be served — Whether the order is invalid because it is silent as to the geographical limits wherein the defendant may be served — Motion dismissed — Federal Court Rules 307, 330, 401.
All Transport Inc. v. The "Rumba" (1981) 112 D.L.R. (3d) 309, referred to.
MOTION. COUNSEL:
W. Charles Kent for plaintiff. J. G. Potvin for defendants.
SOLICITORS:
Burke- Robertson, Chadwick & Ritchie,
Ottawa, for plaintiff.
Scott & Aylen, Ottawa, for defendants.
The following are the reasons for judgment rendered in English by
CATTANACH J.: The defendant, J. Breed Cloth ing, Inc., (hereinafter called the "applicant") has applied for leave to file a conditional appearance herein pursuant to Rule 401 for the purpose of, amongst other things, objecting to the service of a notice of the statement of claim upon the appli- cant-defendant out of the jurisdiction.
That leave was granted and a motion was forth with made, as anticipated in the notice of motion, to rescind, under Rule 330, the ex parte order dated September 24, 1981 whereby leave was granted to serve the applicant ex juris and in the event of the success of that application, as the next
logical consequence, to set aside the service of the notice of the statement of claim so served.
The body of the order so granted pursuant to Rule 307 reads:
Upon hearing counsel for the plaintiff and upon hearing read the affidavit of W. Charles Kent filed on the 23rd day of September, 1981, it is ordered that the plaintiff, Saas Advertis ing, Inc., be at liberty to serve a notice of the statement of claim or declaration out of the jurisdiction against J. Breed Clothing, Inc.; and it is further ordered that the time within which the said defendant is to file his defence be within 30 days after the service thereof and that the costs of this application be in the cause.
Rule 307 reads:
Rule 307. (1) When a defendant, whether a Canadian citizen, British subject or a foreigner, is out of the jurisdiction of the Court and whether in Her Majesty's dominions or in a foreign country, the Court, upon application, supported by affidavit or other evidence showing that, in the belief of the deponent, the plaintiff has a good cause of action, and showing in what place or country, such defendant is or probably may be found, may order (Form 5) that a notice of the statement of claim or declaration may be served on the defendant in such place or country or within such limits as the Court thinks fit to direct (Form 6).
(2) An order under paragraph (1) shall fix a time, depending on the place of service, within which the defendant is to file his defence or obtain from the Court further time to do so.
(3) If any problem arises concerning service of an originating document in a matter other than an action, an application may be made to the Court for directions.
(4) An application for an order under this rule may be made ex parte.
The order granted pursuant to Rule 307 (both the order and the Rule are quoted immediately above), is in the exact language contemplated by Form 5 to Rule 307.
In All Transport Inc. v. The `Rumba" ((1981) 112 D.L.R. (3d) 309) it was held that paragraph (2) of Rule 307 which requires that the order under paragraph (1) shall fix a time within which the defendant shall file his defence, is cast in mandatory terms and the failure to include that direction in the order is not a mere irregularity but rather renders such an order invalid and which must be set aside and that service of such an invalid order must likewise be invalid and set aside.
Counsel for the applicant herein contends that the order here sought to be impugned is likewise invalid in that the order does not specifically state in which place or country or within which territo rial limits the notice of the statement of claim may be served on the defendant.
He points out that the order is completely silent as to the geographical limits wherein the defend ant may be served outside Canada and contends that such omission is fatal to the validity of the order just as the omission to recite the time within which a defence must be filed makes such an order a nullity.
The first consideration in an application for service ex juris is whether it is appropriate that a defendant resident outside the territorial jurisdic tion should be so served bearing in mind the interference with the sovereignty of the foreign country where service is to be effected, the most convenient forum to try the matter and a legal nexus arising from act or conduct of the foreign defendant which relates to the territorial jurisdic tion of this Court. No such difficulty arises in this instance. There is an alleged infringement, in Canada, of a trade mark registered in Canada by a trader resident elsewhere but carrying on business in Canada. Therefore an order for service ex juris on the alleged infringer outside Canada was warranted.
One of the matters that an applicant is required by paragraph (1) of Rule 307 to establish is, "in what place or country, such defendant is or prob ably may be found". That information is necessary to determine if the order should be given and service can be effected and if so within what time the order shall fix within which the defendant must file his defence (see paragraph (2) of Rule 307).
In Ontario the form of notice prescribed specifi cally states that if service is in the United States the time to file the defence shall be forty days and elsewhere sixty days.
In England there is an exhaustive table of times set up depending upon the country in which service is effected.
In the rules of those two jurisdictions neither specifies that the order shall include a direction at what place or country within which the defendant shall be served but forms approved by judicial direction and those appended to the Rules do so provide.
Federal Court Rule 307(1) after stating that information showing in what place or country a defendant is or may be found shall be forthcoming in the supporting material then continues to state that the Court "may order (Form 5) that a notice of the statement of claim ... may be served on the defendant in such place or country or within such limits as the Court thinks fit to direct (Form 6)."
First the Court has the discretion to grant or refuse the order. If discretion is exercised to grant the order the Court has the discretion to direct in what place or in what country or within such limits the notice of statement of claim shall be served on the defendant.
If the Court so directs in the order then the order may only be served where it is directed to be served. Accordingly the practice of making the order as wide as is reasonable in the circumstances is a sensible practice.
The practice which I have consistently followed and which is adopted by most of my brother judges to whom I have spoken has been to give the address in a city, town or other municipality, if that address is given in the supporting material, at which the defendant is to be served and I add "or elsewhere in" and then I name the country within which service is to be effected. By way of example an order might read, "and to serve the same on the defendant at the City of Tokyo or elsewhere in Japan". My own preference is not to specify an address within the city unless the applicant so requests thereby permitting greater latitude.
But as the concluding portion of paragraph (1) of Rule 307 reads it also vests in the Court the discretion of directing that the defendant be served at a specified place outside Canada or not so directing.
Form 5 to Rule 307 reads:
Upon hearing and upon hearing read the affidavit
of filed on the day of 19 , and , it is
ordered that the plaintiff, be at liberty to serve a notice of the statement of claim or declaration out of the
jurisdiction against ; and it is further ordered that the time within which the said defendant is to file his defence be
within days after the service thereof and that the costs
of this application be
That is the form adopted as the order in this instance as that order has been reproduced at the outset.
All that the Form provides is that the applicant is given liberty to serve a notice of the statement of claim out of the jurisdiction plus the mandatory direction that a defence shall be filed within a specified time dictated by distance.
It makes no provision whatsoever for space within which to insert the place and country in which service is to be effected as is the case in the approved forms in the United Kingdom and Ontario.
In the light of the conclusion that I have reached that Rule 307 bestows a discretion on the Court either to omit or include in the order a reference to the place and country of service, the omission of language to that effect from Form 5 follows logically.
Accordingly it would follow that the Judge who gave the order dated September 24, 1981 without naming the place must have exercised his discre tion not to do so from which it follows that the order is not invalid and the service ex juris conse quent thereon is valid.
The motion is therefore dismissed with costs to the plaintiff in any event in the cause.
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