Dell Chemical & Marketing Ltd. et al. v. Aquasol International Inc. et al., 2000 ABQB 587

• Judge: Veit, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: December 20, 1999
• Citations: 2000 ABQB 587;(2000), 273 A.R. 216 (QB)

Dell Chemical v. Aquasol Intl. Inc. (2000), 273 A.R. 216 (QB)

MLB headnote and full text

Temp. Cite: [2000] A.R. TBEd. SE.133

Dell Chemical & Marketing Limited and 420708 Alberta Ltd. (applicants) v. Aquasol International Inc., Dale Storey, Bernd Heinz, David Bjornson, Brian Peckford, Pat Hogan, Karen Leecock, S.A. Mitrad, John Doe and Jane Doe and 623397 Alberta Ltd. (respondents)

(Action No. 9803-08328; 2000 ABQB 587)

Indexed As: Dell Chemical & Marketing Ltd. et al. v. Aquasol International Inc. et al.

Alberta Court of Queen's Bench

Judicial District of Edmonton

Veit, J.

August 24, 2000.

Summary:

The plaintiffs applied for a summary judg­ment for a permanent injunction to prevent the defendants from counterfeiting a product for which the plaintiffs had exclusive rights.

The Alberta Court of Queen's Bench allowed the application. The defendants were also found in contempt for violating interim injunctions issued in the present proceedings.

Editor's Note: See also [1998] A.R. Uned. 555.

Equity - Topic 3906

Fiduciary or confidential relationships - Breach of confidence - Remedies - General - [See Injunctions - Topic 7129 ].

Injunctions - Topic 7129

Particular matters - Particular interests protected - Confidential information - Dell sold a cleaning product called V100 - The formula for making V100 was secret to Dell and its marketing agent Geopetrol - Storey worked for Geopetrol - Storey, along with one Heinz, also had an interest in companies that manufactured a cleaning product made with V100, a petroleum distillate and water - That product was called MV100 - When V100 was no longer available, Storey and Heinz started experi­menting with the ingredients used in mak­ing V100 along with their own ingredients and blending processes and developed an allegedly new cleaning product called Aquasol - The Alberta Court of Queen's Bench issued a permanent injunction pre­venting Storey and Heinz from manufac­turing V100 for use in making Aquasol where: (1) Storey obtained the secret for­mula for V100 in circumstances in which an obligation of confidence arose hence a contractual and fiduciary and equitable obligation on Storey not to manufacture V100 and not to use, in any way, the formula for V100; and (2) this was not a situation in which the public's right to a new product should override the plaintiffs' right to protection of their property in the V100 formula.

Cases Noticed:

Pacific Western Airlines Ltd. v. D.E.E.L. Enterprises and Gauthier et al. (1977), 2 A.R. 166 (C.A.), refd to. [para. 8].

Northland Bank (Liquidation) v. Hongkong Bank of Canada (1991), 120 A.R. 296 (C.A.), refd to. [para. 8].

R. v. Lifchus (W.), [1997] 3 S.C.R. 320; 216 N.R. 215; 118 Man.R.(2d) 218; 149 W.A.C. 218; 9 C.R.(5th) 1; 118 C.C.C.(3d) 1; 150 D.L.R.(4th) 733, refd to. [para. 8].

National Westminster Bank v. Daniel, [1994] 1 All E.R. 156 (C.A.), refd to. [para. 8].

Metropolitan Stores (MTS) Ltd. v. Mani­toba Food and Commercial Workers, Local 832 and Labour Board (Man.), [1987] 1 S.C.R. 110; 73 N.R. 341; 46 Man.R.(2d) 241; 18 C.P.C.(2d) 273; 38 D.L.R.(4th) 321; 25 Admin. L.R. 20; [1987] 3 W.W.R. 1, refd to. [para. 8].

Seager v. Copydex Ltd., [1967] 2 All E.R. 415 (C.A.), refd to. [para. 8].

60630 Manitoba Ltd. et al. v. McCarroll et al., [1995] 6 W.W.R. 1; 102 Man.R.(2d) 277; 43 W.A.C. 277 (C.A.), refd to. [para. 8].

Northwest Territories Public Service Asso­ciation v. Northwest Territories, Flieger and Bates (1979), 21 A.R. 1 (N.W.T.C.A.), refd to. [para. 8].

Wood v. 277887 Alberta Ltd. and Burnat (1984), 55 A.R. 144 (Q.B.), refd to. [para. 8].

Allied Signal Inc. v. Dome Petroleum Ltd., [1995] A.J. No. 1097, refd to. [para. 8].

Cadbury Schweppes Inc. et al. v. FBI Foods Ltd. et al., [1999] 1 S.C.R. 142; 235 N.R. 30; 117 B.C.A.C. 161; 191 W.A.C. 161, dist. [para. 9].

Wirth Ltd. v. Acadia Pipe & Supply Corp. et al. (1991), 113 A.R. 298 (Q.B.), refd to. [para. 9].

Goodman v. Rossi (1995), 83 O.A.C. 38; 24 O.R.(3d) 359 (C.A.), refd to. [para. 9].

Marthaller v. Lansdowne Equity Venture Ltd. (1997), 200 A.R. 226; 146 W.A.C. 226 (C.A.), refd to. [para. 9].

Coco v. Clark (A.N.) (Engineers) Ltd., [1969] R.P.C. 41 (Ch. D.), refd to. [para. 71].

Authors and Works Noticed:

Handley, Hon. K.R., The Doctrine of Res Judicata (1996), generally [para. 8].

Hughes, Roger T., and Woodley, John H., Patents (1984), pp. 324-325 [para. 8].

Snell, Principles of Equity (28th Ed. 1982), pp. 627 & foll. [para. 8].

Counsel:

M.E. Lesniak, for the applicants;

B.J. Vanden Brink, Q.C., for the respon­dents, Storey, Heinz, Bjornson, Peckford and 623397 Alberta Ltd.;

Pat Hogan, on his own account.

Veit, J., of the Alberta Court of Queen's Bench, Judicial District of Edmonton, heard this application on November 17 and 18, and December 20, 1999, and January 7, 14 and 20, 2000, and delivered the following mem­orandum of decision on August 24, 2000.