National Bank Financial Ltd. v. Potter et al., (2012) 314 N.S.R.(2d) 252 (SC)

• Judge: Warner, J.
• Court: Supreme Court of Nova Scotia (Canada)
• Case Date: February 24, 2012
• Jurisdiction: Nova Scotia
• Citations: (2012), 314 N.S.R.(2d) 252 (SC);2012 NSSC 90

Nat. Bk. v. Potter (2012), 314 N.S.R.(2d) 252 (SC);

    994 A.P.R. 252

MLB headnote and full text

Temp. Cite: [2012] N.S.R.(2d) TBEd. MR.012

National Bank Financial Ltd. (plaintiff and defendant by counterclaim) v. Daniel Frederick Potter, Gramm & Company Incorporated, Starr's Point Capital Incorporated, 2532230 Nova Scotia Limited, 3020828 Nova Scotia Limited, Ronald D. Richter, Solutioninc Limited, John Francis Sullivan and Linda Fate Sullivan, Calvin W. Wadden, Craig Anthony Dunham, Douglas George Rudolph, Gerald B. McInnis and Janine M. McInnis, Lowell R. Weir, Blackwood Holdings Incorporated and Staffing Strategists International Inc. (defendants and plaintiffs by counterclaim) and Daniel Potter, Starr's Point Capital Incorporated, Fiona Imrie, Gramm & Company Incorporated, 2532230 Nova Scotia Limited, 3020828 Nova Scotia Limited, Ronald Richter, Donald Snow, Meg Research.com Limited, 3027748 Nova Scotia Limited, Calvin Wadden, Raymond Courtney, Bernard Schelew, Blois Colpitts, Stewart McKelvey Stirling Scales, Bruce Clarke, 2317540 Nova Scotia Limited, Knowledge House Inc., The Estate of the Late Michael Barthe, as represented by his Executrix Barbara Barthe, Lutz Ristow, Derek Banks and Plastics Maritime Ltd. (third parties) and The Halifax Herald Limited, Canadian Broadcasting Corporation, and allNovaScotia.com (intervenors)

Daniel Potter, Knowledge House Inc., and Starr's Point Capital Incorporated (plaintiffs by counterclaim) v. National Bank Financial Ltd., National Bank of Canada, Real Raymond, Jean Turmel, Michel LaBonte, Lorie Haber, Guy Roby, Eric Hicks, Barry Morse, David Mack and Bruce Clarke (defendants by counterclaim)

Calvin Wadden, 3019620 Nova Scotia Ltd. and Andrea Wadden (plaintiffs defendants by counterclaim) v. BMO Nesbitt Burns (defendant plaintiff by counterclaim)

(Hfx. No. 174293; 206439; 208293; 246337; 216059; 2012 NSSC 90)

Indexed As: National Bank Financial Ltd. v. Potter et al.

Nova Scotia Supreme Court

Warner, J.

March 2, 2012.

Summary:

Five related multi-party actions were being heard together. The actions arose out of the collapse of a publicly traded company, Knowledge House Inc. Clarke, who was a former investment adviser of one of the financial institutions involved in the litigation and no longer a party to the actions in light of settlement agreements, was ordered to appear as a witness in these five related actions. Clarke moved, as a non-party, for a confidentiality order, arguing that testifying in open court would infringe his right to a fair trial in an ongoing related criminal proceeding.

The Nova Scotia Supreme Court refused to grant Clarke's motion.

Civil Rights - Topic 3157

Trials - Due process, fundamental justice and fair hearings - Right to fair trial - Five related actions which arose out of the collapse of a publicly traded company were being heard together - Clarke, a non-party, was ordered to appear as a witness - He moved for a confidentiality order, arguing that testifying in open court would infringe his right to a fair trial in an ongoing related criminal proceeding - The Nova Scotia Supreme Court refused to grant the order - The evidence failed to establish that a confidentiality order was necessary or that there was a serious risk refusing such would impact his right to a fair trial - The common law and the Charter protected Clarke from subsequent use and derivative use of his testimony which significantly diminished any prosecutorial advantage that might be gained from his open court testimony - Given the publicity surrounding the case, including a settlement agreement that might be admissible at the criminal proceeding, Clarke testifying in open court would not risk tainting the jury pool - It was not established that witnesses would alter their evidence in subsequent criminal proceedings after hearing Clarke testify - The deleterious effects of the confidentiality order would outweigh the speculative positive effects of granting such an order.

Civil Rights - Topic 4461

Protection against self-incrimination - Use of incriminating evidence in other proceedings - General - [See Civil Rights - Topic 3157 ].

Civil Rights - Topic 4462

Protection against self-incrimination - Use of incriminating evidence in other proceedings - Derivative evidence - [See Civil Rights - Topic 3157 ].

Courts - Topic 1404

Administration - General - Public access to judicial proceedings (incl. court records) - The Nova Scotia Supreme Court reviewed the history of the open court principle and the test for a confidentiality order - See paragraphs 23 to 32.

Courts - Topic 4806

Common law - General - Hearings - Open court - [See Civil Rights - Topic 3157 and Courts - Topic 1404 ].

Practice - Topic 5001

Conduct of trial - Open court - [See Civil Rights - Topic 3157 and Courts - Topic 1404 ].

Practice - Topic 5002

Conduct of trial - Open court - Power to hear in camera - [See Civil Rights - Topic 3157 and Courts - Topic 1404 ].

Cases Noticed:

MacIntyre v. Nova Scotia (Attorney General), Grainger and Canada (Attorney General) et al., [1982] 1 S.C.R. 175; 40 N.R. 181; 49 N.S.R.(2d) 609; 96 A.P.R. 609, refd to. [para. 24].

Edmonton Journal v. Alberta (Attorney General), [1989] 2 S.C.R. 1326; 102 N.R. 321; 103 A.R. 321, refd to. [para. 24].

Canadian Broadcasting Corp. v. New Brunswick (Attorney General), [1996] 3 S.C.R. 480; 203 N.R. 169; 182 N.B.R.(2d) 81; 463 A.P.R. 81, refd to. [para. 25].

A.B. v. Bragg Communications Inc. et al. (2011), 301 N.S.R.(2d) 34; 953 A.P.R. 34; 2011 NSCA 26, refd to. [para. 26].

Toronto Star Newspapers Ltd. et al. v. Canada et al., [2010] 1 S.C.R. 721; 402 N.R. 206; 482 A.R. 66; 490 W.A.C. 66; 263 O.A.C. 4; 2010 SCC 21, refd to. [para. 28].

Canadian Broadcasting Corp. v. Dagenais et al., [1994] 3 S.C.R. 835; 175 N.R. 1; 76 O.A.C. 81, refd to. [para. 29].

R. v. Mentuck (C.G.), [2001] 3 S.C.R. 442; 277 N.R. 160; 163 Man.R.(2d) 1; 269 W.A.C. 1; 2001 SCC 76, refd to. [para. 33].

Waverley (Village Commissioners) et al. v. Nova Scotia (Minister of Municipal Affairs) et al. (1993), 123 N.S.R.(2d) 46; 340 A.P.R. 46 (S.C.), refd to. [para. 35].

Vernon v. British Columbia (Minister of Housing and Social Development), [2010] B.C.T.C. Uned. 1688; 2010 BCSC 1688, refd to. [para. 35].

Phillips et al. v. Richard, J., [1995] 2 S.C.R. 97; 180 N.R. 1; 141 N.S.R.(2d) 1; 403 A.P.R. 1, refd to. [para. 41].

Phillips v. Nova Scotia (Commission of Inquiry into the Westray Mine Tragedy) - see Phillips et al. v. Richard J.

R. v. Baksh, [2005] O.T.C. 609; 199 C.C.C.(3d) 201 (Sup. Ct.), refd to. [para. 42].

Cahuzac v. Wisniowski et al. (2010), 293 N.S.R.(2d) 1; 928 A.P.R. 1; 2010 NSSC 258, refd to. [para. 42].

R. v. Noël (C.), [2002] 3 S.C.R. 433; 295 N.R. 1; 2002 SCC 67, refd to. [para. 53].

R. v. Nedelcu (M.) (2011), 276 O.A.C. 106; 2011 ONCA 143, refd to. [para. 56].

R. v. R.J.S., [1995] 1 S.C.R. 451; 177 N.R. 81; 78 O.A.C. 161, refd to. [para. 59].

Hollinger Inc. et al. v. Ravelston Corp. et al. (2008), 235 O.A.C. 136; 2008 ONCA 207, refd to. [para. 60].

Catalyst Fund General Partner I Inc. v. Hollinger Inc., [2005] O.T.C. 485; 255 D.L.R.(4th) 233 (Sup. Ct.), refd to. [para. 61].

United States of America v. Burns and Rafay, [2001] 1 S.C.R. 283; 265 N.R. 212; 148 B.C.A.C. 1; 243 W.A.C. 1, refd to. [para. 62].

Saunders v. United Kingdom, [1996] E.C.H.R. 65, refd to. [para. 62].

Statutes Noticed:

Canadian Charter of Rights and Freedoms, 1982, sect. 7 [para. 59]; sect. 13 [para. 51].

Civil Procedure Rules (N.S.), rule 85.01, rule 85.04 [para. 21].

Judicature Act, R.S.N.S. 1989, c. 240, sect. 37 [para. 22].

Rules of Civil Procedure (N.S.) - see Civil Procedure Rules (N.S.).

Rules of Court (N.S.) - see Civil Procedure Rules (N.S.).

Authors and Works Noticed:

Beaudoin, Gérald A., and Mendes, Errol P., The Canadian Charter of Rights and Freedoms (4th Ed. 2005), p. 297 [para. 27].

Bryant, Alan W., Lederman, Sidney N., and Fuerst, Michelle K., Sopinka, Lederman & Bryant: The Law of Evidence in Canada (3rd Ed. 2009), §§8.191 [paras. 46, 52]; 8.192 to 8.267 [para. 52].

Currie, John H., International Law in the jurisprudence of the McLachlin Court, in David A. Wright and Adam M. Dodek, eds, Public Law at the McLachlin Court (2011), p. 391 [para. 62].

Paciocco, David and Stuesser, Lee, The Law of Evidence (6th ed 2011), pp. 288 to 301 [para. 52].

Roach, Kent and Schneiderman, David, Freedom of Expression in Canada, in Gerald-A. Beaudoin and Errol Mendes, eds, Canadian Charter of Rights and Freedoms (4th Ed. 2005), p. 297 [para. 27].

Schabas, Paul, What Happens at a Bail Hearing Anyway? The Supreme Court's Troubling Retreat from the Openness Principle in Toronto Star v. Canada (2011), 54 Sup. Ct. L. Rev.(2d) 197, p. 199 [para. 23].

Wright, David A., and Dodek, Adam, Public Law at the McLachlin Court (2011), p. 108 [para. 62].

Counsel:

Mark T. Knox, for Bruce Clarke;

Nancy G. Rubin, for the Interveners, The Halifax Herald Limited and Canadian Broadcasting Corporation;

AllNovaScotia.com, unrepresented;

David Coles, Q.C., for NBFL and NBC, watching brief;

Sean MacDonald, for the defendants and plaintiffs by counterclaim, watching brief.

This motion was heard on February 24, 2012, in Halifax, Nova Scotia, before Warner, J., of the Nova Scotia Supreme Court, who rendered the following decision orally on February 24, 2012, with written reasons released on March 2, 2012.