Date: 20081120
Docket: T-1409-04
Citation: 2008
FC 1301
Toronto, Ontario, November 20, 2008
PRESENT: The Honourable Mr. Justice Hughes
BETWEEN:
ASTRAZENECA CANADA INC.,
and AKTIEBOLAGET HÄSSLE
Plaintiffs
and
APOTEX
INC.
Defendant
AND
BETWEEN:
APOTEX INC.
Plaintiff by Counterclaim
and
ASTRAZENECA CANADA INC.,
and AKTIEBOLAGET HÄSSLE and ASTRAZENECA AB.
Defendants by Counterclaim
REASONS FOR ORDER AND ORDER
[1]
These reasons
deal with two motions brought by way of an appeal from a Prothonotary’s decision
disposing of requests for answers put to party representatives during
discovery. The Defendant, Plaintiff-by-Counterclaim, Apotex is the moving
party on both motions, the Plaintiffs, Respondents-by-Counterclaim,
collectively AstraZeneca are Respondents.
[2]
In one
appeal, Apotex seeks to overturn the Prothonotary’s Order compelling certain
answers to be given by Apotex’s representative, Dr. Sherman. In the other
appeal, Apotex seeks to compel answers to be given by AstraZeneca’s
representative Dr. Lovgren, which the Prothonotary Ordered need not be given.
[3]
For the
reasons that follow, I dismiss the appeals taken from both Orders with costs to
AstraZeneca.
I. Discovery Generally
[4]
The
Canadian discovery system common to the Federal Court and other Superior Courts
in Canada has become a system that is unique to Canada. In other Anglo based jurisdictions
such as the United
Kingdom and Australia, there is no oral discovery
as we know it. Generally, they permit some form of limited interrogatories and
limited discovery of documents. Even the limited discovery offered by the United Kingdom practice in patent matters
has been criticized as overly complex and expensive in a proposal put forward by
Michael Burdon, a UK Patent Litigator entitled “An Experiment to Test the
Attraction of Simplified Patent Litigation in England” proposed by the UK Intellectual
Property Solicitors Association, October 2008. Burdon suggests adopting a
German/Dutch model in which complex patent litigation is disposed of without
discovery at a trial lasting only a day.
[5]
In the United States, the practice in the Federal
Court system and many State Courts is to require vast, undifferentiated, access
to documents in the possession of a party and wide ranging pre-trial depositions
of potential witnesses. Actual oral discovery, called Rule 30(b)(6) in the
Federal system, is quite perfunctory. This broad ranging documentary
production and deposition practice has been harshly criticized by the American College of Trial Lawyers in
the Interim Report of the Task Force on Discovery delivered August 1, 2008.
The Interim Report’s overview summarized four major themes on the issue:
1.
Although
the civil justice system is not broken, it is in serious need of repair. The
survey shows that the system is not working; it takes too long and costs too
much. Deserving cases are not brought because the cost of pursuing them fails
a rational cost-benefit test, while meritless cases, especially smaller cases,
are being settled rather than being tired because it costs too much to litigate
them.
2.
The
discovery system is, in fact, broken. Discovery costs far too much and has
become an end in itself. As one respondent noted: “The discovery rules in
particular are impractical in that they promote full discovery as a value above
almost everything else.” Electronic discovery, in particular, clearly needs a
serious overhaul. It is described time and time again as a “morass”.
Concerning electronic discovery, one respondent stated, “The new rules are a
nightmare. The bigger the case, the more the abuse and the bigger the
nightmare.”
3.
Judges
should take more active control of litigation from the beginning. Where abuses
occur, judges are perceived to be less than effective in enforcing the rules.
According to one respondent, “Judges need to actively manage each case from the
outset to contain costs; nothing else will work.”
4.
Local
Rules are routinely described as “traps for the unwary” and many think they
should either be abolished entirely or made uniform.
[6]
In Canada,
James Farley Q.C., previously Farley J. of the Ontario Superior Court,
Commercial Court, in a paper entitled: “Efficient Court Administration and
Commercial Court Litigation and Dispute Resolution” delivered to a Judicial
Conference in Nassau, Bahamas on December 1, 2006 strongly criticized what he
called “autopsy” discovery. This type of discovery has become common place and
occurs when discovery itself becomes the objective - to uncover as much as
possible from the other side however marginally relevant. One is in danger of
losing perspective and becoming enmeshed in discovery, which should be only an
intermediate process between pleading and trial, rather than focusing on obtaining
only matters necessary and relevant for the trial on issues as defined by the
pleadings.
[7]
Rule 3 of
the Federal Court Rules provides a procedural foundation to be followed
in all matters, including discovery:
3. These Rules shall be interpreted and
applied so as to secure the just, most expeditious and least expensive
determination of every proceeding on its merits.
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3. Les présentes règles sont
interprétées et appliquées de façon à permettre d’apporter une solution au
litige qui soit juste et la plus expéditive et économique possible.
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[8]
Professor
Denis Ferland, a law professor at Laval University, Quebec, and a member of the Federal Court Rules Committee
who drafted the 1988 version of the Rules, wrote in a paper presented at the
Canadian Bar Association’s annual meeting in Winnipeg in August 1995:
To
summarise, the new rules, which respect the uniqueness of the Federal Court
and of the matters and geographical area under its jurisdiction, and the
coexistence of two legal systems and traditions in Canada, and structured in
a more consistent corpus, within the limits of enabling legislation, will
have to be modern, flexible and efficient, in order to:
-
make the Federal Court more accessible to parties
-
ensure that effect is given to the rights of the parties to the proceedings
-
ensure respect for the fundamental procedural rights of the parties and third
party interveners
-
unify or, failing that, harmonize or simplify certain procedures
-
facilitate and accelerate proceedings
-
place more responsibility on the parties by involving them in the matter in
which their cases proceed or in the process of settling or adjudicating their
cases
-
maximize the efficiency of the judicial system, in terms of delays and the
costs of the administration of justice.
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En
résumé, les nouvelles règles, respectant la spécificité de la Court fédérale,
des matières et de l’entendue territoriale de sa compétence, la coexistence
de deux systèmes et traditions juridiques au Canada, et structurées dans un
corpus plus cohérent, devront, dans les limites des lois habitantes
actuelles, être modernes, souples et efficaces, aux fins :
-
de favoriser une accessibilité accrue du justiciable à la Cour fédérale
-
d’assurer la sanction des droits des parties à l’instance
-
d’assurer le respect des droits procéduraux fondamentaux des parties et des
tiers intervenants
-
d’unifier ou, à défaut, d’harmoniser ou de simplifier certaines procédures
-
de faciliter et d’accélérer le déroulement de l’instance
-
de responsabiliser davantage les parties en les associant au processus du
déroulement de l’instance ou au processus de règlement à l’amiable ou
d’adjudication de leur litige
-
de maximiser l’efficacité de l’appareil judiciaire, en termes de délai et de
coût d’administration de la justice.
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II.
Discovery of Documents
[9]
In setting
out the rules respecting discovery of documents, the Federal Court Rules have
changed the test as to what a party is required to produce. The previous test
was articulated in the British case of Compagnie Financière du Pacifique v.
Peruvian Guano Company (1892), 11 Q.B.D. 55). The test was expressed as “It seems to me that every
document relates to the matters in question in the action, which not only would
be evidence upon any issue, but also which, it is reasonable to suppose,
contains information which may--not which must--either directly or indirectly
enable the party requiring the affidavit either to advance his own case or to
damage the case of his adversary." This
test was severely criticized by Lord Woolf in his report “Access to
Justice” at paragraph 15 of Chapter 21:
The result of the Peruvian
Guano decision was to make virtually unlimited the range of potentially
relevant (and therefore discoverable) documents, which parties and their
lawyers are obliged to review and list, and which the other side is obliged to
read, against the knowledge that only a handful of such documents will affect
the outcome of the case. In that sense, it is a monumentally inefficient
process, especially in the larger cases. The more conscientiously it is
carried out, the more inefficient it is.
[10]
Rule
222(2) of the Federal Court Rules has changed the definition of “relevance”
in respect of a document for production purposes. It states:
(2)
For the
purposes of rules 223 to 232 and 295, a document of a party is relevant if
the party intends to rely on it or if the document tends to adversely affect
the party's case or to support another party's case.
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(2) Pour l’application des
règles 223 à 232 et 295, un document d’une partie est pertinent si la partie
entend l’invoquer ou si le document est susceptible d’être préjudiciable à sa
cause ou d’appuyer la cause d’une autre partie.
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[11]
While some
decisions of this Court appear to have overlooked this Rule or applied it as “Peruvian
Guano” would have looked at a matter, it is clear that the Rule is intended
to bring to bear a more issue-oriented test of relevance and avoid the “train
of inquiry” cases that have served to expand discovery with little or no
effect on matters that are ultimately presented to the trial judge. Again to
quote from Lord Woolf at paragraph 22 of his Report, he grouped documents that
could be discovered into four categories. The first two fall under the Federal
Court Rule 222(2) the third is what is in effect considered by the Federal
Court of Appeal in Eli Lilly Canada Inc. v. Novopharm Ltd, 2008 FCA 287 :
The parties’ own documents: these are documents which a
party relies upon in support of his contentions in the proceedings.
Adverse documents: these are documents of which
a party is aware and which to a material extent adversely affect his own case
or support another party’s case.
The relevant documents:
these are document which are relevant to the issues in the proceeding, but which
do not fall into categories 1 or 2 because they do not obviously support or
undermine either side’s case. They are part of the “story” or background. The
category includes documents which, though relevant, may not be necessary for
the fair disposal of the case. It is fair to say that this category produces
proportionately the greatest number of documents disclosed and to least effect.
Train of inquiry documents: these are the documents
referred to by Brett LJ in the Peruvian Guano case.
[12]
In the Eli
Lilly Canada Inc. v. Novopharm Ltd. decision, supra, the Federal
Court of Appeal dealt with the production and inspection of documents on
discovery in an appeal from a decision of Lemieux J. of this Court who was, in
turn, dealing with an appeal from a Prothonotary’s Order. While discussing the
“train of inquiry” test, the Federal Court of Appeal made it clear that
Rule 222(2) has modified that test. The “train of inquiry” test does
not open the door to almost limitless discovery; it must be fairly shown that
it is reasonable to suppose that a document contains information that will
directly or indirectly enable a party to advance its own case or to damage that
of the other party. It is Lord Woolf’s third category, previously referred to,
as being part of the story or background; care must be taken to balance what
must be disclosed with what effect, if any, the document may have. I reproduce
paragraphs 56, 63 and 63 of the reasons of the Federal Court of Appeal:
56 As I indicated earlier, Lemieux J.
concluded, correctly in my view, that the disclosure of documents in an
affidavit of documents was a matter of relevance and not of discretion. In so
concluding, he relied on McNair J.'s Reasons in Reading and Bates Construction
Co. v. Baker Energy Resources Corp. et al (1988), 24 C.P.R. (3rd) 66,
where the learned Judge wrote at page 70, inter alia, that:
The test as to what
documents are required to produce is simply relevance. The test of relevance is
not a matter for the exercise of the discretion. What documents parties are
entitled to is a matter of law, not a matter of discretion. The principle for
determining what document properly relates to the matters in issue is that it
must be one which might reasonably be supposed to contain information which may
directly or indirectly enable the party requiring production to advance his own
case or to damage the case of his adversary, or which might fairly lead him to
a train of inquiry that could have either of these consequences: [authorities
omitted].
…
63 Novopharm argues that the use of
the word "show" means that it has to actually prove that a document
which has not been produced would lead to information falling within the
"train of inquiry" test. I cannot agree with Novopharm's submission.
In my view, the Prothonotary's Reasons, when read in their entirety, clearly
establish that Novopharm's submission is without merit. It is clear from the
Prothonotary's Reasons that she was of the view that if there was a reasonable
likelihood, as opposed to an outside chance, that a document sought for
production would lead to information relevant under Rule 222(2), then an order
for production should be made.
64 Furthermore, the Prothonotary's
reference to a fishing expedition in paragraph 19 of her Reasons was one where
a party was required to disclose a document that might lead to another document
that might then lead to useful information which would tend to adversely affect
the party's case or to support the other party's case. In my view, limiting the
"train of inquiry" test in this manner is consistent with the test
described in Peruvian Guano, supra, and applied by this Court in SmithKline
Beecham Animal Health Inc. v. Canada, [2002] 4 C.T.C. 93 (F.C.A.), where, at
para. 24 of her Reasons for the Court, Madam Justice Sharlow wrote:
[24] The scope and
application of the rules quoted above depend upon the meaning of the phrases
"relating to any matter in question between ... them in the appeal"
and "relating to any matter in issue in the proceeding". In Compagnie
Financiere et Commerciale du Pacifique v. Peruvian Guano Company (1882), 11
Q.B.D. 55 (C.A.), Brett, L.J. said this about the meaning of the phrase "a document
relating to any matter in question in the action" (at page 63):
It seems to me that
every document relates to the matters in question in the action, which not only
would be evidence upon any issue, but also which, it is reasonable to suppose,
contains information which may - not which must - either directly or indirectly
enable the party requiring the affidavit either to advance his own case or to
damage the case of his adversary. I have put in the words "either
directly or indirectly," because, as it seems to me, a document can
properly be said to contain information which may enable the party requiring
the affidavit either to advance his own case or to damage the case of his
adversary, if it is a document which may fairly lead him to a train of inquiry,
which may have either of these two consequences.
III.
Oral Discovery
[13]
When it
comes to oral examination for discovery, Rule 240 provides for the scope of
examination which is defined as relevance in respect of any unadmitted
allegation of fact:
240. A person being
examined for discovery shall answer, to the best of the person's knowledge,
information and belief, any question that
(a) is relevant to any unadmitted allegation of fact in a
pleading filed by the party being examined or by the examining party; or
(b) concerns the
name or address of any person, other than an expert witness, who might
reasonably be expected to have knowledge relating to a matter in question in
the action.
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240. La
personne soumise à un interrogatoire préalable répond, au mieux de sa
connaissance et de sa croyance, à toute question qui :
a) soit se rapporte à un fait allégué et non admis dans un
acte de procédure déposé par la partie soumise à l’interrogatoire préalable
ou par la partie qui interroge;
b) soit
concerne le nom ou l’adresse d’une personne, autre qu’un témoin expert, dont
il est raisonnable de croire qu’elle a une connaissance d’une question en
litige dans l’action.
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[14]
In Apotex Inc. v.
Pharmascience Inc., (2004), 36 C.P.R. (4th) 218, Justice Blais, as he then
was, in the Federal Court, presented a synopsis of the relevant principles on
oral discovery. This decision was affirmed by the Federal Court of Appeal (332
N.R. 389) in brief reasons. At paragraph 19 of his decision, Blais J. said (to
summarize):
a. Expert opinion is not proper subject
matter for discovery;
b. Witnesses are not to testify as to
questions of law;
c. Examination for discovery may seek only
facts, not law or argument; and
d. The question “upon what facts do you rely
for paragraph x of your pleading” is always improper.
[15]
Rule 242 permits
objections to questions, for instance a question may be relevant however may be
objected to where it is unreasonable or unnecessary or the inquiries to be made
would be unduly onerous:
242. (1) A person may
object to a question asked in an examination for discovery on the ground that
(a) the answer is privileged;
(b) the question is not relevant to any unadmitted
allegation of fact in a pleading filed by the party being examined or by the
examining party;
(c) the question is unreasonable or unnecessary; or
(d) it would be
unduly onerous to require the person to make the inquiries referred to in
rule 241.
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242. (1) Une personne peut soulever une objection
au sujet de toute question posée lors d’un interrogatoire préalable au motif
que, selon le cas :
a) la réponse est protégée par un privilège de
non-divulgation;
b) la question ne se rapporte pas à un fait allégué et non
admis dans un acte de procédure déposé par la partie soumise à
l’interrogatoire ou par la partie qui l’interroge;
c) la question est déraisonnable ou inutile;
d) il
serait trop onéreux de se renseigner auprès d’une personne visée à la règle
241.
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[16]
“Relevance” alone is
not the test as to whether a question put on discovery must be answered. Of
course, if a question is irrelevant, it need not be answered. However, if a
question is relevant to some degree or another, then, if an objection is
raised, the Court must consider factors such as the degree of relevance, how
burdensome is it to obtain an answer, is the question fair, is it abusive and
so forth. Strayer JA. when he was in the Federal Court of Appeal wrote in Merck
& Co. v. Apotex Inc. 2003 FCA 438, 28 C.P.R. (4th) 491 at
paragraph 13:
A person who is a party to a civil action
is entitled to ask any question on discovery that is relevant to the issue:
that is a matter of justice to him, subject of course to the discretionary
power of the prothonotary or a judge to disallow the question where it is
abusive for one of the reasons mentioned above.
[17]
The Federal Court of
Appeal again considered the scope of “relevance” in the context of oral
discovery in Apotex Inc. v. Bristol-Myers Squibb Co., 2007 FCA 379. In
that decision Sharlow JA. for the Court, considered “relevance” as
including not only that which will go to proving or disproving the case of one
or other party, and considered the “train of inquiry” test which she
stated was subject always to the “... overriding discretion of a
prothonotary or judge to control abuses of the discovery process”. At
paragraphs 30, 31 and 35, Sharlow JA. wrote:
30 In determining the propriety of a
particular question posed in the examination for discovery of Dr. Ryan, the
test is whether it is reasonable to conclude that the answer to that question
might lead Apotex to a train of enquiry that may either advance its case or
damage the case of BMS: Apotex v. Canada, [2005] F.C.J. No. 1021,
2005 FCA 217. For
example, Apotex is entitled to ask any question that could elicit an admission
by BMS as to a relevant fact, or that could elicit information about the
existence of documents that have not been disclosed but that meet the test of
relevance for the purposes of pre-trial discovery, as set out in the Further
and Better Order, subject always to the overriding discretion of a prothonotary
or judge to control abuses of the discovery process.
31 In determining whether the test of
relevance is met in a particular case, it is necessary to consider the
allegation that the questioning party is attempting to establish or refute. In
this case, Apotex is attempting to advance its allegation of inutility (based
on its interpretation of the promise of the 436 patent as explained above), or
to damage the position of BMS that denies the allegation of inutility.
…
35 The task of distinguishing proper
questions from improper ones requires consideration of the factual and
procedural context of the case, informed by an appreciation of the applicable
legal principles. The determination made by the judge or prothonotary at first
instance will stand if it is reasonable, unless it is based on an error of law.
[18]
Thus, simply to say
that a question is “relevant” does not mean that it must
inevitably be answered. The Court must protect against abuses so as to ensure
the just, most expeditious and least expensive (Rule 3) resolution of the
proceeding not the discovery. Relevance must be weighed against matters such
as among other things, the degree of relevance, how onerous is it to provide an
answer, if the answer requires fact or opinion or law and so forth.
IV.
Standard of Review of Prothonotary’s Discovery Order
[19]
Prothonotaries of
this Court are burdened, to a large extent, with motions seeking to compel
answers to questions put on discovery. Often hundreds of questions must be
considered. Hours and often days are spent on such motions. It appears that
in many cases the parties and counsel have lost sight of the real purpose of
discovery, which is directed to what a party truly requires for trial. They
should not slip into the “autopsy” form of discovery nor consider
discovery to be an end in itself.
[20]
A determination made
by a Prothonotary following this arduous process ought not to be disturbed unless
a clear error as to law or as to the facts has been made, or the matter is
vital to an issue for trial. Where there has been an exercise of discretion,
such as weighing relevance against onerousness, that discretion should not be
disturbed. The process is not endless. The parties should move expeditiously
to trial.
[21]
The standard of
review generally applicable to decisions given by a Prothonotary has been
restated by the Federal Court of Appeal in Merck & Co. v. Apotex Inc.,
2003 FCA 488, 30 C.P.R. (4th) 40 at paragraph 19:
19 To avoid the confusion which we
have seen from time to time arising from the wording used by MacGuigan J.A., I
think it is appropriate to slightly reformulate the test for the standard of
review. I will use the occasion to reverse the sequence of the propositions as
originally set out, for the practical reason that a judge should logically
determine first whether the questions are vital to the final issue: it is only
when they are not that the judge effectively needs to engage in the process of
determining whether the orders are clearly wrong. The test would now read:
Discretionary orders
of prothonotaries ought not be disturbed on appeal to a judge unless:
a) the questions
raised in the motion are vital to the final issue of the case, or
b) the orders
are clearly wrong, in the sense that the exercise of discretion by the
prothonotary was based upon a wrong principle or upon a misapprehension of the
facts.
[22]
Justice Strayer,
having subsequently become a Deputy Judge of this Court discussed in particular
appeals from decisions of Prothonotary as to requiring answers on examinations
for discovery and the question of “relevance”. He pointed out that
relevance alone does not determine whether an answer is to be given, there are
other matters to be considered, deference is to be given to a decision of a
Prothonotary in that regard. In Letourneau v. Clearbrook Iron Works Ltd.,
2005 FC 475 at paragraph 4 he wrote:
4 The parties argue that many of the
decisions of the Prothonotary are based on relevance and that relevance is not
a discretionary matter. They argue that relevance is a question of law and not
one on which the Prothonotary has a discretion: therefore I am at liberty to
decide questions of relevance de novo. While there is a paucity of authority on
this question, I am satisfied that it is more consistent with the role
envisaged by Parliament for prothonotaries that deference should be shown to
their decisions on matters of relevance just as it would be shown on other
preliminary pre-trial matters. As was said by Décary J.A. in the Merck case,
supra, at paragraph 22:
In my respectful view
it cannot reasonably be said that a standard of review which subjects all
impugned decisions of prothonotaries to hearings de novo regardless of the
issues involved in the decision or whether they decide the substantive rights
of the parties is consistent with the statutory objective. Such a standard
conserves neither "judge power" nor "judge time". In every
case, it would oblige the motions judge to re-hear the matter. Furthermore, it
would reduce the office of a prothonotary to that of a preliminary "rest
stop" along the procedural route to a motions judge. I do not think that
Parliament could have intended this result.
I respectfully agree
with Wetston J. in Hayden Manufacturing Co. v. Canplas Industries Ltd., (1998) 86 C.P.R. (3d) 17,
who in considering whether a decision of a prothonotary on matters of relevance
was discretionary stated:
I agree that relevance
is the test, but I also am of the opinion that the order is discretionary in
that the Court must consider whether the Prothonotary had fallen into legal
error of law which prevented him from exercising his discretion properly. If so
the Court must exercise its own discretion de novo. In other words even if I
would have made a different order, unless the Prothonotary erred in the manner
described previously, this Court should not interfere. I am of the opinion
therefore the order of the A.S.P. in this case is both interlocutory and
discretionary.
[23]
Law establishes if
a question is relevant, discretion may be applied as to whether, nonetheless,
it is appropriate to Order, or not to Order, that an answer be given.
Deference is to be given to a Prothonotary’s Order in that regard.
V.
Specific Questions at Issue
A.
Questions Put to Apotex (Sherman)
[24]
Apotex takes issue
with two areas of questioning put by AstraZeneca’s lawyers to Apotex’s
representative, Dr. Sherman. The first deals with identification of the countries
to which Apotex exported its products at issue. The second deals with
information as to certain characteristics of the Apotex products.
[25]
These groups of
questions were ordered to be answered with very cryptic reasons given by the
Prothonotary. Given the vast number of questions to be dealt with, the only
practical way to dispose of answerability issues was to state reasons
cryptically. This is not a reason to set the decision aside or to determine it
de novo (Anchor Brewing Co. v. Sleeman
Brewing & Malting Co. (2001), 15 C.P.R. (4th) 63 (FC) at
para. 31).
[26]
This first group
consists of one question only, that identified as Question 48. It asks that
Apotex identify the countries to which it exports the products at issue.
Apotex’s counsel argues that the transcript shows that Apotex makes only one
kind of product and, the trial being bifurcated, there is no reason to identify
such countries at this time. AstraZeneca’s counsel points out that, on
discovery, Apotex equivocated as to how many different types of products that
it was making or would make in the future. Given the state of the discovery
transcript, the Prothonotary did not err in ordering the question to be
answered. I remind counsel for AstraZeneca as I did at the hearing that an
implied undertaking exists such that the answers are to be used for the purposes
of this action only and not otherwise.
[27]
The second group
consists of questions 88 and 219. They relate to information that Apotex has
as to stability, discoloration and gastric acid resistance of its own
products. AstraZeneca’s counsel says that such information will be useful in
rebutting some of Apotex’s allegations as to inutility. Apotex’s counsel says
that, when closely read, Apotex’s pleadings as to inutility skillfully avoid
the need to make inquiries as to Apotex’s own product. The Prothonotary was
correct not to make such razor sharp distinctions at this time and to exercise
his discretion in ordering these questions to be answered.
[28]
I will not interfere
with the Prothonotary’s determination as to these questions asked of Apotex.
B.
Questions Put to AstraZeneca (Lovgren)
[29]
Apotex takes issue
with the Prothonotary’s refusal to order AstraZeneca’s representative, Dr. Lovgren,
to answer certain questions. They are divided into four groups. The first
group is characterized as dealing with paragraph 62 of Apotex’s Defence and
Counterclaim which deals with whether AstraZeneca’s inventors were aware as to
the bioequivalence of certain formulations containing water-insoluble alkaline
reacting compounds. The second deals with in situ sub-coats. The third
deals with testing performed by AstraZeneca employee on an Apotex product, as
set out in an affidavit of that employee filed in other proceedings. The
fourth group deals with formulations and testing as described in the disclosure
of the patents at issue.
[30]
Again counsel for
Apotex conceded at the hearing that these questions do not go to issues vital
for trial.
[31]
The first group is
identified as Items 27-29 as collated by the parties for consideration by the
Prothonotary. It deals with Dr. Lovgren’s knowledge of bioequivalence of
certain compounds that he may have worked on and includes discussion as to
solubility of those and other compounds. The Prothonotary Ordered that these
items need not be answered, the first because it had been answered and was
overbroad, the second because the witness stated that he could not answer and
it was overbroad, the third because it had been answered and did not go to the
witness’s knowledge but to a contention by Apotex.
[32]
Having read the
context in which the questions were put and answers otherwise given in the
transcript, I will not interfere with the discretion exercised by the
Prothonotary in Ordering that these specific questions need not be answered.
[33]
The second group
comprises what has been identified as Items 127-128. This group deals with
information and documents that AstraZeneca may have as to certain properties of
and how to identify what is called in situ sub-coats. The Prothonotary
Ordered that these Items need not be answered, Item 127 was not relevant to the
pleadings, and not a fair question, Item 128 was not relevant and was directed
to paragraph 203 of Apotex’s Defence, not paragraph 40 as argued on the motion
by Apotex’s counsel.
[34]
Having read the
relevant portions of the transcript, the Itemization chart prepared for the
Prothonotary and Apotex’s Defence, I agree with the Prothonotary’s
disposition. Item 127 framed is not relevant. Items 127 and 128 are really
directed to paragraph 203 of the Defence when read in context. A passing reference
to paragraph 40 in an earlier Item incorporated by reference does not alter the
true context of these questions.
[35]
The third group
comprises Items 194 and 196-198 and deals with questions directed to the
knowledge that AstraZeneca and its employee Nicolas had in respect of certain
testing referred to in an affidavit of Nicolas filed by AstraZeneca in another
proceeding. Oddly, AstraZeneca chose to make this affidavit part of its documents
which it produced in this action. Apparently, AstraZeneca was not asked as to
the purpose to which the affidavit will be put in this action, and its counsel
did not enlighten this Court as to the point when asked at the hearing. To the
extent that the Prothonotary may have relied on jurisprudence directed to the
propriety of questions directed to reports of experts that may be used at
trial, he may have been somewhat misguided but again, looking at the transcript
and questioning elsewhere including a request to produce data that is broad
enough to encompass data that would fall within the requests made respecting
the Nicolas affidavit, I will not interfere with the Prothonotary’s Order in
this respect.
[36]
The fourth group
consists of a collection of Items, some of which Apotex’s counsel dropped from
its request during oral argument. The Items remaining in the fourth group
requested by Apotex are Items 425, 429, 430, 432, 437-439, 441, 446-448, 450,
451, 455, 458, 459, 465, 466, 470, 471, 479, 485, 487, 567 and 579. These
questions are argued by Apotex counsel to seek information as to what is set
out in the description of the patents at issue having regard to certain
validity pleadings raised by Apotex.
[37]
On examining the
questions as asked in context and hearing the submissions of Apotex’s counsel,
I am not satisfied that the Prothonotary was wrong in ordering that these
questions need not be answered. The questions are not clearly linked to what
Apotex has pleaded, despite Apotex’s counsels efforts after the fact, to argue
otherwise. I will not disturb the Prothonotary’s Order in this regard.
[38]
I will not interfere
with the decision of the Prothonotary in respect of any of these groups of
questions.
V.
Costs
[39]
As to costs,
AstraZeneca has been successful on these motions therefore I will award costs
to AstraZeneca.
ORDER
For the Reasons given above:
THIS COURT ORDERS that:
1. The two appeals brought by
Apotex Inc. in respect of the Order of Prothonotary Lafrenière dated July 15,
2008 are dismissed;
2. Costs are awarded to
AstraZeneca.
“Roger T. Hughes”