Talisman Energy Inc. v. Flo-Dynamics Systems Inc. et al., (2015) 613 A.R. 8 (QB)

• Judge: Tilleman, J.
• Court: Court of Queen's Bench of Alberta (Canada)
• Case Date: February 11, 2015
• Citations: (2015), 613 A.R. 8 (QB);2015 ABQB 340

Talisman Energy v. Flo-Dynamics Systems (2015), 613 A.R. 8 (QB)

MLB headnote and full text

Temp. Cite: [2015] A.R. TBEd. JN.021

Talisman Energy Inc. (plaintiff) v. Flo-Dynamics Systems Inc., Flo-Dynamics Water Management Inc., Tryon North Surveying Ltd., Tryon Engineering Inc., David John Elliott, Andrew William Hall, Gentian Toska, Elena Toska, 1634644 Alberta Ltd., A. Hall Land Surveying Inc., 0847047 BC Ltd., John Doe and ABC Company Ltd. (defendants)

(1301 11549; 2015 ABQB 340)

Indexed As: Talisman Energy Inc. v. Flo-Dynamics Systems Inc. et al.

Alberta Court of Queen's Bench

Judicial District of Calgary

Tilleman, J.

May 27, 2015.

Summary:

The plaintiff, Talisman Energy Inc., sued the defendants, alleging, inter alia, breaches of contract, breaches of fiduciary duties, misappropriation, conversion and conspiracy. In that context, the plaintiff sought an order compelling the individual defendant, Gentian Toska, to repatriate to a solicitor's trust account in Canada all funds in an Austrian bank account held by himself, defendant Elena Toska and 1634644 Alberta Inc., estimated at approximately $4 million USD (the Offshore Funds).

The Alberta Court of Queen's Bench, given the defendants' undertaking not to withdraw funds without notice and court application if necessary, dismissed the plaintiff's application for an order directing the transfer of the Offshore Funds to a solicitor's account in Canada. However, given that the defendants moved those Funds offshore in the face of litigation, the court ordered that the Funds be placed in a solicitor's trust account in Austria as soon as practicable. If that arrangement was not possible, the parties could discuss other options at the next case management meeting.

Injunctions - Topic 1612

Interlocutory or interim injunctions - General principles - Mareva injunctions - The plaintiff sued the defendants, alleging, inter alia, breaches of contract, breaches of fiduciary duties, misappropriation, conversion and conspiracy - In that context, the plaintiff sought Mareva-type relief compelling certain of the defendants to repatriate to a solicitor's trust account in Canada all funds in an Austrian bank account (i.e., $4 million USD (the Offshore Funds)) - The Alberta Court of Queen's Bench opined that while the court had the power to order the transfer of funds back to Canada, such a remedy was rare - These circumstances did not warrant such an extreme remedy - The plaintiff had met its burden to establish a prima facie case for a Mareva injunction and there was a risk of dissipation of assets - Any risk of dissipation was addressed by the defendants' undertaking not to move the finds without 15 days' notice - However, given that the defendants moved the Offshore Funds in the face of litigation, the court ordered that the Funds be placed in a solicitor's trust account in Austria as soon as practicable - See paragraphs 20 to 49.

Cases Noticed:

Feigelman, Feigelman, Goldberg, R.L.L. Holdings Ltd. and Pre-Vue Co. (Canada) Ltd. v. Aetna Financial Services Ltd., Lax and Burke, [1985] 1 S.C.R. 2; 56 N.R. 241; 32 Man.R.(2d) 241, refd to. [para. 10].

Derby & Co. v. Weldon (No. 6), [1990] 3 All E.R. 263, refd to. [para. 15].

International Association of Science and Technology for Development et al. v. Hamza (1997), 200 A.R. 342; 146 W.A.C. 342; 1997 ABCA 263, refd to. [para. 15].

Hamza v. Hamza - see International Association of Science and Technology for Development et al. v. Hamza.

Boczkiewicz et al. v. Creative Capital Connection Inc. et al., [2006] A.R. Uned. 928; [2007] 3 W.W.R. 566; 2006 ABQB 732, refd to. [para. 22].

Welsh v. Welsh, [2011] A.R. Uned. 811; 9 R.F.L.(7th) 409; 2011 ABQB 686, refd to. [para. 22].

Mooney v. Orr, 1994 CarswellBC 488, refd to. [para. 22].

Cho v. Twin Cities Power-Canada U.L.C. et al. (2012), 522 A.R. 154; 544 W.A.C. 154; 2012 ABCA 47, refd to. [para. 23].

Agrium Inc. et al. v. Pocha et al., [2000] A.R. Uned. 424; 2000 ABCA 296, refd to. [para. 23].

Barclay-Johnson v. Yuill, [1980] 3 All E.R. 190 (Ch. Div.), refd to. [para. 24].

1007374 Alberta Ltd. v. Ruggieri et al. (2013), 565 A.R. 329; 2013 ABQB 420, refd to. [para. 33].

Boczkiewicz et al. v. Creative Capital Connection Inc. et al., [2006] A.R. Uned. 928; 2006 ABQB 732, refd to. [para. 33].

Cretanor Maritime Co. v. Irish Marine Management Ltd., [1978] 3 All E.R. 164 (C.A.), refd to. [para. 35].

Iraqi Ministry of Defence v. Arcepey Shipping Co. SA, [1980] 1 All E.R. 480 (Q.B. Div.), refd to. [para. 35].

Parmar Fisheries v. Parceria Maritima Esperanca L.D.A. (1982), 53 N.S.R.(2d) 338; 109 A.P.R. 338 (T.D.), refd to. [para. 35].

Mooney v. Orr (1994), 100 B.C.L.R.(2d) 335 (S.C.), refd to. [para. 36].

Vaccaro v. Twin Cities Power-Canada, U.L.C. et al., [2013] A.R. Uned. 178; 2013 ABCA 252, refd to. [para. 36].

1400467 Alberta Ltd. et al. v. Adderley et al. (2014), 591 A.R. 40; 2014 ABQB 439, refd to. [para. 36].

First Majestic Silver Corp. et al. v. Davila et al. (2014), 349 B.C.A.C. 151; 596 W.A.C. 151; 2014 BCCA 11, affd. [2013] B.C.T.C. Uned. 1704; 2013 BCSC 1704, refd to. [para. 36].

Silver Standard Resources Inc. v. Joint Stock Co. Geolog et al. (1998), 115 B.C.A.C. 262; 189 W.A.C. 262; 59 B.C.L.R.(3d) 196 (C.A.), refd to. [para. 36].

Interclaim Holdings Ltd. et al. v. Down et al. (1999), 250 A.R. 94; 213 W.A.C. 94; 1999 ABCA 329, refd to. [para. 36].

Clark et al. v. Nucare plc (2006), 208 Man.R.(2d) 102; 383 W.A.C. 102; 2006 MBCA 101, refd to. [para. 37].

Borowski v. Feidler (Heinrich) Perforiertechnik GmbH et al. (1994), 158 A.R. 213; 22 Alta. L.R.(3d) 366 (Q.B.), refd to. [para. 40].

Statutes Noticed:

Judicature Act, R.S.A. 2000, c. J-2, sect. 13(2) [para. 21].

Counsel:

Timothy St. J. Ellam, Q.C., for the plaintiff;

Allan J. Guty, for the defendants.

This matter was heard in Calgary, Alberta, on February 11, 2015, before Tilleman, J., of the Alberta Court of Queen's Bench, who delivered the following decision on May 27, 2015.