Cargill Ltd. v. Makarenko et al., (2009) 338 Sask.R. 211 (QB)

• Judge: Mills, J.
• Court: Court of Queen's Bench of Saskatchewan (Canada)
• Case Date: Wednesday June 17, 2009
• Jurisdiction: Saskatchewan
• Citations: (2009), 338 Sask.R. 211 (QB);2009 SKQB 235

Cargill Ltd. v. Makarenko (2009), 338 Sask.R. 211 (QB)

MLB headnote and full text

Temp. Cite: [2009] Sask.R. TBEd. JL.015

Cargill Limited (plaintiff) v. Igor Makarenko, LDM Yorkton Corp., LDM Yorkton Processing GP, LDM Yorkton Trading LP and Louis Dreyfus Canada Ltd. (defendants)

(2009 Q.B.G. No. 642; 2009 SKQB 235)

Indexed As: Cargill Ltd. v. Makarenko et al.

Saskatchewan Court of Queen's Bench

Judicial Centre of Regina

Mills, J.

June 17, 2009.

Summary:

Makarenko was an employee of Cargill Ltd. at one of its canola crushing facilities (the Clavet II). Makarenko left Cargill and started working for the corporate defendants (collectively "Louis Dreyfus"). Makarenko was involved in the continuing design and construction of Louis Dreyfus's Yorkton canola crushing plant. Cargill learned that Makarenko had used Cargill's designs in the Yorkton plant. Cargill also discovered that before Makarenko resigned, he had downloaded significant material and had obtained virtually the entire design of the Clavett II. Louis Dreyfus suspended Makarenko from his duties and took possession of his laptop and Blackberry. Cargill brought an action against Makarenko and Louis Dreyfus and sought an interlocutory injunction to protect its proprietary information. The wording in the injunction requested could result in the shutdown of the construction of the Yorkton plant.

The Saskatchewan Court of Queen's Bench issued an interim injunction ordering Louis Dreyfus and Makarenko to return the downloaded information and restraining the use of any downloaded information for any purpose outside of the province of Saskatchewan. Irreparable harm could be caused to Cargill if Louis Dreyfus remained in possession or was allowed to utilize the information at operations elsewhere in the world. Irreparable harm had not been established by Cargill as it related to the potential for ongoing use of Cargill proprietary information in the construction of the Louis Dreyfus plant. The balance of convenience also favoured an order that would allow continued completion of the Louis Dreyfus plant.

Injunctions - Topic 700

Granting an injunction - Considerations affecting grant - Balance of benefit to plaintiff and detriment to defendant and innocent persons - Makarenko was an employee of Cargill Ltd. at one of its canola crushing facilities (the Clavet II) - Makarenko left Cargill and started working for the corporate defendants (collectively "Louis Dreyfus") - Makarenko was involved in the continuing design and construction of Louis Dreyfus's Yorkton canola crushing plant - Cargill learned that Makarenko had used Cargill's designs in the Yorkton plant - Cargill also discovered that before Makarenko resigned, he had downloaded significant material and had obtained virtually the entire design of the Clavett II - Louis Dreyfus suspended Makarenko from his duties and took possession of his laptop and Blackberry - Cargill brought an action against Makarenko and Louis Dreyfus and sought an interlocutory injunction to protect its proprietary information - The wording in the injunction requested could result in the shutdown of the construction of the Yorkton plant - The Saskatchewan Court of Queen's Bench issued an interim injunction ordering Louis Dreyfus and Makarenko to return the downloaded information and restraining the use of any downloaded information for any purpose outside of the province of Saskatchewan - Irreparable harm could be caused to Cargill if Louis Dreyfus remained in possession or was allowed to utilize the information at operations elsewhere in the world - Irreparable harm had not been established as it related to the potential for ongoing use of Cargill proprietary information in the construction of the Louis Dreyfus plant - The balance of convenience favoured an order that would allow continued completion of the Louis Dreyfus plant - The court considered, inter alia, the significant third party interests that would be affected if the Yorkton plant was not completed or the construction was delayed.

Injunctions - Topic 1606

Interlocutory or interim injunctions - General principles - Balance of convenience - [See Injunctions - Topic 700].

Injunctions - Topic 1802

Interlocutory or interim injunctions - Requirement of irreparable injury - What constitutes - [See Injunctions - Topic 700].

Injunctions - Topic 6308

Injury to trade - Improper use of property - [See Injunctions - Topic 700].

Injunctions - Topic 7129

Particular interests protected - Confidential information - [See Injunctions - Topic 700].

Cases Noticed:

RJR-MacDonald Inc. et Imperial Tobacco Ltd. v. Canada (Procureur général), [1994] 1 S.C.R. 311; 164 N.R. 1; 60 Q.A.C. 241, appld. [para. 1].

Buchberger v. Carter (2008), 339 Sask.R. 154; 2008 SKQB 377, refd to. [para. 21].

Moss v. TransCanada Pipelines Ltd. (1999), 185 Sask.R. 319; 1999 SKQB 118, refd to. [para. 29].

Columbia National Investments Ltd. v. Abbotsford (City), [2007] B.C.T.C. Uned. C10; 2007 BCSC 386, refd to. [para. 29].

Northwest Territories v. Sirius Diamonds Ltd. et al. (2001), 208 F.T.R. 7; 3 C.P.R.(4th) 486; 2001 FCT 702, refd to. [para. 29].

Counsel:

Robert W. Leurer, Q.C. and Meghan R. McCreary, for the plaintiff;

Michael W. Milani, Q.C. and Erin M.S. Kleisinger, for the defendants;

Katherine Hensel and William J. Warren, for Igor Makarenko.

This application was heard before Mills, J., of the Saskatchewan Court of Queen's Bench, Judicial Centre of Regina, who delivered the following fiat on June 17, 2009.