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T-3693-79
Jupiter International Limited (Plaintiff) v.
Dart Containerline Company Limited and Eckert Overseas Agencies Limited (Defendants)
Trial Division, Walsh J.—Montreal, March 8; Ottawa, March 11, 1982.
Practice Motion for relief of failure to file particulars within delay Judgment granting application for particulars stated "Motion Granted" and incorporated provisions sought by defendant, i.e. 15-day limit and dismissal of action "with- out further order" in case of default Particulars delivered to bailiff within delay, but served on defendant outside 15-day period Defendant's bill of costs on dismissal of action taxed Whether judgment granting application for particulars may be varied or whether Court functus officio Whether final judgment rendered in view of words "without further order" Rule 3(1)(c) conferring on judge discretion to enlarge time fixed for doing any act for reasons considered valid Bai liffs delay in serving particulars sufficient reason Judg ment not final as it merely fixed date when judgment dismiss ing action would be pronounced Motion allowed Federal Court Rules 3(I)(c), 300(7), 337, 338, 415(3) Quebec Code of Civil Procedure, art. 249.
Plaintiff moves to be relieved of its failure to file particulars requested by defendant Dart Containerline Company Limited within the delay prescribed and to be permitted to file said particulars concurrent with the present judgment. In its application for an order for particulars, defendant asked that they be furnished within 15 days and that in default, the statement of claim be struck and the action dismissed "without further order". No representations were made on behalf of plaintiff at the hearing of the application. The judgment of Dubé J. granting the application incorporated the provisions sought by defendant and merely stated "Motion Granted". The particulars, prepared by plaintiff's present attorney and deliv ered to bailiff within the 15-day limit, were served on defendant outside the delay. The Registry of the Court refused to accept them, on the ground that an extension of the delay had not been granted. Defendant's costs on the dismissal of the action were subsequently taxed. Defendant argues that the effect of the words "without further order" is that judgment has been rendered and the action dismissed. The issue is whether the judgment of Dubé J. may be varied so as to permit the belated production of the particulars or whether the Court is now functus officio.
Held, the motion is allowed. The words "without further order" do not prohibit an extension of the delay for varying the order of Dubé J. for reasons considered valid in the discretion of the judge hearing the application for extension. This is especially so when the order, as in the present case, is a mere procedural one. To interpret the words differently would be to negate the broad discretion given to the Court under Rule
3(1)(c) to abridge or enlarge the time fixed for doing any act. In the case at bar, the bailiff's delay in serving the particulars obtained within the time prescribed is sufficient reason to justify extending it to the date on which they were actually served on defendant. Rule 337 requires that a judgment be pronounced and Rule 338, that it shall be recorded as of the day on which it was pronounced. The judgment of Dubé J. had the effect of fixing a date after the expiry of 15 days therefrom on which a judgment dismissing the action would be pro nounced. No final judgment was rendered.
Canadian National Railway Company v. The Ship "MIV Norango" [1976] 2 F.C. 264, applied. Grace Kennedy & Company Limited v. Canada Jamaica Line [1979] 1 F.C. 401 (Annex, p. 406), distinguished. May & Baker (Canada) Ltd. v. The Motor Tanker "Oak" [1979] 1 F.C. 401, considered.
MOTION. COUNSEL:
J.-P. Robitaille for plaintiff. P. J. Bolger for defendants.
SOLICITORS:
Gregory & Robitaille, Montreal, for plaintiff.
McMaster Meighen, Montreal, for defend ants.
The following are the reasons for order ren dered in English by
WALSH J.: Plaintiff represented by its now solicitor Jean-Paul Robitaille moves to be relieved of its failure to file the details of particulars requested by defendant Dart Containerline Com pany Limited within the delay stipulated in the judgment of Mr. Justice Dubé on January 11, 1982 and to be permitted to file the said particu lars concurrent with the judgment to be rendered on the present motion and to proceed on the merits of its action. The facts indicate that the proceed ings were instituted on July 30, 1979, claiming damages of $58,000 resulting from delay in deliv ery of seasonal cargo which led to loss of profits and cancellation of orders and sales. Plaintiff at that time was represented by the legal firm of Courtois, Clarkson, Parsons and Tétrault. In due course plaintiff was ordered to post security for costs and did so by a bond in the amount of $1,500 on December 8, 1980. On August 10, 1981,
Messrs. Courtois, Clarkson, Parsons and Tétrault were authorized by judgment to serve on plaintiff out of the jurisdiction at its place of business a motion to cease representing it as attorneys due to inability to communicate or obtain instructions. Pursuant to the order obtained this was duly served on plaintiff and on attorneys for defendant Dart Containerline Company Limited and by judgment dated October 19, 1981, the motion was granted. It is of interest to note that the notice in lieu of service to be given out of the jurisdiction refers to article 249 of the Quebec Code of Civil Procedure. In order to comply with the Rules of this Court, Rule 300(7) should have been applied which provides that until a copy of the order is served on every party to the proceedings the attor ney shall continue to be considered as the attorney on the record and this does not appear to have been done. Nothing turns on this however, since, when defendant Dart Containerline Company Limited made an application for particulars pursu ant to Rule 415(3) on December 15, 1981, pre sentable on January 11, 1982, a copy was not only sent by registered mail to plaintiff at its place of business, 14923 N.E. 40th Redmond, Washington, U.S.A., but a similar notice had been served on plaintiff's then attorneys on September 4, 1981. It cannot therefore be said that plaintiff did not have adequate notice of the motion when it came on for hearing on January 11, 1982, before the Honour able Mr. Justice Dubé, although by that time plaintiff was no longer represented by attorneys so no representations were made to the Court on its behalf. The judgment recited the application for the order for particulars and merely stated "Motion Granted". In the application for order however defendant Dart Containerline Company Limited had asked that the particulars in question be furnished within 15 days and that in default the statement of claim be struck and the action dis missed "without further order".
Whether coincidentally or not it was only later in the day on January 11, 1982, that plaintiff's present attorney received instructions by telephone to represent plaintiff. He immediately obtained the
necessary particulars and prepared a document giving these details dated January 25, 1982, which was within the 15-day delay fixed by the judg ment. However although he delivered them to his bailiff for service that day they were not actually served on said defendant until February 1, 1982, outside the delay. When plaintiff's attorney attempted to file them in Court the Registry refused to accept them, invoking Justice Dubé's judgment, as they were outside the delay fixed and no extension had been granted. Defendant takes the position that because of the words "without further order" in the judgment of Justice Dubé the case was now closed and that no further action was required to have plaintiff's claim dismissed. On February 18, 1982, defendant mailed by registered letter to plaintiff a notice of taxation of bill of costs to take place on February 26, 1982, and in due course on that date defendant's costs on dis missal of the action were taxed at $267. (It is not without significance to note that the claim would now be prescribed as it originated in the summer of 1978.) On the same day, February 26, 1982, plaintiff produced the present motion dated Febru- ary 22, 1982, presentable on March 8, 1982.
With respect to the dates therefore it is clear that although defendant Dart Containerline Com pany Limited only received the particulars sought a few days after the 15-day delay for production of same had expired said defendant nevertheless had these particulars long before it had its bill of costs taxed based on its contention that the effect of the judgment of Dubé J. was to automatically cause the action to be dismissed as of January 27, 1982.
The question now to be decided is whether said judgment of Dubé J. can be varied so as to permit the belated production of the particulars or wheth er the Court is now functus, judgment having been rendered as defendant claims.
Although the judgment of Dubé J. cannot be said to have been rendered ex parte, nor would it likely have been any different had representations been made, I have serious doubts as to whether the action can be considered as having been dismissed without further judgment as a result of the words "without further order" in said judgment (which words were actually provided by defendant in its
motion, the judgment merely reading "Motion Granted"). This question was considered by the Court of Appeal in the case of Canadian National Railway Company v. The Ship "M/V Norango"'. It is true that there were some differences in that case in that the order which was not accomplished within the time delay merely barred the filing of supporting affidavits to prove claims with respect to money paid into Court, and also the judgment, although it contained the words "shall be forever barred from doing so" had a further paragraph specifying that nothing in the order should be construed as an adjudication upon the merits of any future application for an extension of time to file the affidavits. The Court of Appeal in render ing judgment however referred to Rule 3 (1) (c) of the Rules of this Court which reads as follows:
Rule 3.(1)...
(c) the Court may enlarge or abridge the time appointed by these Rules, or fixed by any order, for doing any act or taking any proceeding upon such terms, if any, as seem just, and any such enlargement may be ordered, although the application for the same is not made until after the expira tion of the time appointed or fixed;
and at pages 267-268 states:
The wording of the Rule clearly sets out that the time fixed by any order for doing any act may be enlarged although the application is not made until after the time fixed by the order. The effect of the words "forever barred", if accepted literally as finally disposing of the matter, would be to deprive another Judge or even Addy J. himself, from exercising, in a proper case, the clear discretion given him by the wording of Rule 3(1)(c). In my opinion, no Judge of the Court has such a power .... [Emphasis mine.]
Later on page 268 the judgment of Urie J. states:
Addy J. undoubtedly made the order in the mandatory way in which he did because of the unconscionable delays by the claimants in failing properly to prove their claims but that does not mean that there could not be circumstances in which the granting of a further delay might not be found to be acceptable.
The judgment approved the discretion exercised by Decary J. in extending the delay for reasons which he deemed sufficient, as he had the right to do in the exercise of his discretion, and in the present case I would find that the mere delay by the bailiff to serve the particulars which plaintiff's present attorney had obtained from his client within the delay provided is sufficient reason to justify
' [1976] 2 F.C. 264.
extending the delay for a few days to the date on which they were actually received by defendant on February 1, 1982.
Reference was also made to the case of May & Baker (Canada) Ltd. v. The Motor Tanker "Oak" 2 , although there again the facts are sub stantially different so it is merely useful to exam ine the reasoning of the Court by analogy. In that case the orders were made ex parte which cannot be said to be the case here although reference was made in the judgment to the fact that "the appel lant was given no opportunity to be heard with regard thereto". The judgment on pages 404-405 states:
Generally speaking, when a court makes an order or delivers a judgment, in the absence of special provision, it is without authority to review such order or judgment. Its correctness can only be dealt with on appeal. When, however, an order is made ex parte, in my view, in the absence of something to the contrary, there is an inherent jurisdiction in the Court, after the party adversely affected has been given an opportunity to be heard, if it then appears that the ex parte order or judgment should not have been made,
(a) to set aside the ex parte order or judgment as of the time when the order setting aside is made, and
(b) to make such ancillary order as may be necessary to restore the party adversely affected to the position he would have been in if the ex parte order or judgment had not been made.
In the present case it cannot be said that Justice Dubé's order should not have been made or that it was not properly made.
I do not believe that it can be considered that final judgment has been rendered in this matter and that the Court is functus as a result of the taxation of the bill of costs. A careful reading of Rule 337 respecting delivery and pronouncement of judgments requires that a judgment be pro nounced and Rule 338 requires that it shall be recorded as of the day on which it was pronounced or delivered. It appears to me that if a question of appeal arose, which is not the case here, however, the delays would only run from such date, so that what the judgment of January 11, 1982, did was fix a date after the expiry of 15 days therefrom in which a judgment dismissing the action would be pronounced. As pointed out in the Canadian Na tional Railway case (supra) the effect of the words "forever barred" would be to negate the broad discretion given to the Court under Rule 3(1)(c), and I am of the view that the same applies
2 [ 1979] 1 F.C. 401.
to the casual use of the words "without further order" in the present case which should not be interpreted as prohibiting the extending of the delay for varying the order of Dubé J. for reasons considered valid in the discretion of the judge hearing such application. This is especially so when the order was a mere procedural one as in the present case and not one permitting the institu tion of proceedings after the delay to institute them had expired as in the case of Grace Kennedy & Company Limited v. Canada Jamaica Line annexed to the judgment in the case of May & Baker (Canada) Ltd. v. The Motor Tanker "Oak" (supra) in which Jackett P., as he then was, stated at page 408 of the May & Baker case:
I have had occasion previously to refuse to grant a motion made on substantially the same grounds. Where the policy reflected by the law is that a lawsuit in respect of a cause of action be launched within a limited period from the time the cause of action arises and that the defendant or defendants in such a lawsuit be served with the initiating document within a limited period from the launching of the proceedings, it does not appear to me to be a "sufficient reason" for not serving a particular defendant within the specified period to show that the plaintiff is carrying on settlement discussions with some other defendant. Each defendant, as it seems to me, is entitled to the benefit of the law. If such a reason were accepted as a "sufficient reason", it would operate to frustrate the obvious purpose of statutes limiting the periods for commencing actions.
On the question of costs however plaintiff is clearly at fault for its lack of diligence although this is not sufficient in my view to justify the dismissal of the action without any opportunity for hearing on the merits. Any wasted costs payable to attorneys for defendant Dart Containerline Com pany Limited on the taxation of the bill of costs shall be paid together with the costs of this motion.
ORDER
Plaintiff is relieved of its failure to file the details of particulars requested by defendant Dart Containerline Company Limited within the delay stipulated in the judgment of the Honourable Mr. Justice Dubé of January 11, 1982, and is permit ted to file such particulars which were duly served on said defendant on February 1, 1982; costs of this motion are in favour of said defendant in any event of the cause, together with any wasted costs resulting from the taxation of the bill of costs in favour of defendant.
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