055455 N.B. Inc. et al. v. Atlantic Lottery Corp. et al., (2014) 414 N.B.R.(2d) 139 (TD)

• Judge: Rideout, J.
• Court: Court of Queen's Bench of New Brunswick (Canada)
• Case Date: January 06, 2014
• Jurisdiction: New Brunswick
• Citations: (2014), 414 N.B.R.(2d) 139 (TD);2014 NBQB 15

055455 N.B. v. Atlantic Lottery (2014), 414 N.B.R.(2d) 139 (TD);

    414 R.N.-B.(2e) 139; 1075 A.P.R. 139

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Temp. Cite: [2014] N.B.R.(2d) TBEd. JA.020

Renvoi temp.: [2014] N.B.R.(2d) TBEd. JA.020

055455 N.B. Inc. and 047438 N.B. Inc. (plaintiffs) v. Atlantic Lottery Corporation Inc., and Lotteries Commission of New Brunswick and Province of New Brunswick (defendants)

(MC/720/04; 2014 NBQB 15; 2014 NBBR 15)

Indexed As: 055455 N.B. Inc. et al. v. Atlantic Lottery Corp. et al.

Répertorié: 055455 N.B. Inc. et al. v. Atlantic Lottery Corp. et al.

New Brunswick Court of Queen's Bench

Trial Division

Judicial District of Moncton

Rideout, J.

January 16, 2014.

Summary:

Résumé:

In 1990, the defendant Province of New Brunswick established a video lottery (VL) program. The defendant, Lotteries Commission of New Brunswick, was established to conduct and manage the VL program on behalf of the Province. The defendant, Atlantic Lottery Corporation Inc., was an interprovincial corporation which managed lotteries in the four Atlantic provinces. The plaintiffs were the owners of video lottery terminals (VLTs) whose role was to purchase, install and maintain VLTs in approved locations. The plaintiffs sued the defendants, inter alia, in tort alleging negligent misrepresentation, bargaining in bad faith, unlawful interference with legitimate economic interests and unlawful interference with vested rights. The defendants moved to strike those portions of the statement of claim (paragraphs 27, 28 and 68), asserting that no cause of action arose against them for the alleged torts due to the Proceedings Against the Crown Act.

The New Brunswick Court of Queen's Bench, Trial Division, allowed the motion and struck the impugned paragraphs of the statement of claim. With respect to paragraphs 27 and 28, the plaintiffs were permitted 10 days to amend the pleadings as provided for in these reasons.

Crown - Topic 4427

Actions by and against Crown in right of a province - Proceedings against the Crown Acts - Actions to which Act applicable - [See Practice - Topic 2230 ].

Crown - Topic 4531

Actions by and against Crown in right of a province - Capacity of Crown to be sued - General - [See Practice - Topic 2230 ].

Fraud and Misrepresentation - Topic 2508

Misrepresentation - General principles - Negligent misrepresentation - [See Practice - Topic 2230 ].

Practice - Topic 2230

Pleadings - Striking out pleadings - Grounds - Failure to disclose a cause of action - In 1990, the defendant Province of New Brunswick established a video lottery (VL) program - The defendant, Lotteries Commission of New Brunswick, was established to conduct and manage the VL program on behalf of the Province - The defendant, Atlantic Lottery Corporation Inc., was an interprovincial corporation which managed lotteries in the four Atlantic provinces - The plaintiffs were the owners of video lottery terminals (VLTs) whose role was to purchase, install and maintain VLTs in approved locations - The plaintiffs sued the defendants, inter alia, in tort alleging negligent misrepresentation, bargaining in bad faith, unlawful interference with legitimate economic interests and unlawful interference. with vested rights - The defendants moved to strike those portions of the statement of claim (paragraphs 27, 28 and 68), asserting that no cause of action arose against them for the alleged torts due to the Proceedings Against the Crown Act - The New Brunswick Court of Queen's Bench, Trial Division, allowed the motion and struck the impugned paragraphs of the statement of claim - The defendants had established the requirements necessary under rule 23.01(1)(a) of the Rules of Court (N.B.) - In addition, negligent misrepresentation, bargaining in bad faith, unlawful interference with legitimate economic interests and unlawful interference with vested rights were not torts contemplated in s. 4 of the Proceedings Against the Crown Act - Consequently, even if the court were to assume that the tortious allegations contained in paragraph 68 of the statement of claim were true, it followed that the allegations did not disclose a reasonable cause of action because they could not be brought against the Crown or Crown agency - See paragraphs 39 to 46.

Torts - Topic 9110

Duty of care - Particular relationships - Economic interests - Duty to negotiate in good faith - [See Practice - Topic 2230 ].

Couronne - Cote 4427

Actions par et contre la Couronne du chef d'une province - Lois sur les procédures contre la Couronne - Actions auxquelles la loi s'applique - [Voir Crown - Topic 4427 ].

Couronne - Cote 4531

Actions par et contre la Couronne du chef d'une province - Qualité de la Couronne à être poursuivie - Généralités - [Voir Crown - Topic 4531 ].

Délits civils - Cote 9110

Devoir de diligence - Relations particulières - Intérèts économiques - Obligation de négocier de bonne foi - [Voir Torts - Topic 9110 ].

Fraude et assertion inexacte - Cote 2508

Assertion inexacte - Principes généraux - Assertion inexacte et négligente - [Voir Fraud and Misrepresentation - Topic 2508 ].

Procédure - Cote 2230

Plaidoiries - Radiation des plaidoiries - Motifs - Défaut de révéler une cause d'action ou un moyen de défense - [Voir Practice - Topic 2230 ].

Cases Noticed:

Boisvert v. LeBlanc (2005), 294 N.B.R.(2d) 325; 765 A.P.R. 325; 2005 CarswellNB 762 (C.A.), refd to. [para. 15].

Levasseur et al. v. New Brunswick Securities Commission, [2012] N.B.R.(2d) Uned. 58 (T.D.), refd to. [para. 15].

Sewell v. Sewell (2007), 314 N.B.R.(2d) 330; 812 A.P.R. 330 (C.A.), refd to. [para. 17].

Lévesque v. New Brunswick et al. (2011), 372 N.B.R.(2d) 202; 961 A.P.R. 202 (C.A.), refd to. [para. 18].

Algo Enterprises Ltd. et al. v. Repap New Brunswick Inc. (2013), 406 N.B.R.(2d) 36; 1053 A.P.R. 36 (T.D.), refd to. [para. 22].

Doucet et al. v. Spielo Manufacturing Inc. et al. (2011), 372 N.B.R.(2d) 1; 961 A.P.R. 1 (C.A.), refd to. [para. 22].

Oz Optics Ltd. v. Timbercon Inc. (2011), 285 O.A.C. 232 (C.A.), refd to. [para. 22].

Bram Enterprises Ltd. et al. v. A.I. Enterprises Ltd. et al. (2012), 387 N.B.R.(2d) 215; 1001 A.P.R. 215 (C.A.), refd to. [para. 29].

Leavitt v. Hooper (2012), 388 N.B.R.(2d) 1; 1006 A.P.R. 1 (T.D.), refd to. [para. 29].

Wash v. New Brunswick, [2008] N.B.J. No. 198 (T.D.), refd to. [para. 34].

Tigger Games Ltd. v. Atlantic Lottery Corp. et al. (2003), 268 N.B.R.(2d) 85; 704 A.P.R. 85 (T.D.), refd to. [para. 37].

Agnew v. Dow Chemical (1991), 116 N.B.R.(2d) 1; 293 A.P.R. 1 (C.A.), refd to. [para. 41].

Counsel:

Avocats:

Gregory E. Murphy, Q.C., for the plaintiffs;

Richard Scott, Q.C., for the defendant, Atlantic Lottery Corporation Inc.;

Krista L. Colford, for the defendants, Lotteries Commission of New Brunswick, Province of New Brunswick.

This motion was heard on January 6, 2014, by Rideout, J., of the New Brunswick Court of Queen's Bench, Trial Division, Judicial District of Moncton, who delivered the following decision on January 16, 2014.