Havana House Cigar & Tobacco Merchants Ltd. v. Doe, 2002 FCA 75

Date: 20020227

Docket: A-777-00

Neutral citation: 2002 FCA 75

CORAM:        ROTHSTEIN J.A.

SEXTON J.A.

EVANS J.A.

BETWEEN:

                         HAVANA HOUSE CIGAR & TOBACCO MERCHANTS LTD.,

EMPRESS CUBANA DEL TABACO trading as

CUBATABACO and HABANOS S.A.

         Plaintiffs

(Respondents in Appeal)

                                                                              - and -                          

JANE DOE and JOHN DOE and

OTHER PERSONS, NAMES UNKNOWN,

WHO OFFER FOR SALE, SELL, IMPORT, MANUFACTURE, DISTRIBUTE

ADVERTISE, OR DEAL IN UNAUTHORIZED OR COUNTERFEIT

HAVANA HOUSE MERCHANDISE, and 1116270 ONTARIO INC.

t/a KOZY KORNER'S, ANTHONY NIGRO, and

714660 ONTARIO INC. t/a COPA-HABANA SMOKE & CIGAR SHOP

Defendants

                                                                                                                                  (Appellants in Appeal)

-and-

1116270 ONTARIO INC. t/a KOZY KORNER'S,

ANTHONY NIGRO and 714660 ONTARIO INC. t/a

COPA-HABANA SMOKE & CIGAR SHOP

Plaintiffs by Counterclaim

(Appellants in Appeal)

-and-

HAVANA HOUSE CIGAR & TABACCO MERCHANTS LTD.,

EMPRESS CUBANA DEL TABACO trading as

CUBATABACO and HABANOS S.A.

Defendants by Counterclaim

(Respondents in Appeal)

                                           Heard at Toronto, Ontario, on February 26, 2002

                    Judgment delivered from the Bench at Toronto, Ontario on February 26, 2002

REASONS FOR JUDGMENT OF THE COURT BY:                                                   SEXTON J.A.

Date: 20020227

Docket: A-777-00

Neutral citation: 2002 FCA 75

CORAM:        ROTHSTEIN J.A.

SEXTON J.A.

EVANS. J.A.

BETWEEN:

HAVANA HOUSE CIGAR & TOBACCO MERCHANTS LTD.,

EMPRESS CUBANA DEL TABACO trading as

CUBATABACO and HABANOS S.A.

         Plaintiffs

(Respondents in Appeal)

                                                                              - and -                          

JANE DOE and JOHN DOE and

OTHER PERSONS, NAMES UNKNOWN,

WHO OFFER FOR SALE, SELL, IMPORT, MANUFACTURE, DISTRIBUTE

ADVERTISE, OR DEAL IN UNAUTHORIZED OR COUNTERFEIT

HAVANA HOUSE MERCHANDISE, and 1116270 ONTARIO INC.

t/a KOZY KORNER'S, ANTHONY NIGRO, and

714660 ONTARIO INC. t/a COPA-HABANA SMOKE & CIGAR SHOP

Defendants

                                                                                                                                  (Appellants in Appeal)

-and-

1116270 ONTARIO INC. t/a KOZY KORNER'S,

Page: 2

ANTHONY NIGRO and 714660 ONTARIO INC. t/a

COPA-HABANA SMOKE & CIGAR SHOP

Plaintiffs by Counterclaim

(Appellants in Appeal)

-and-

HAVANA HOUSE CIGAR & TABACCO MERCHANTS LTD.,

EMPRESS CUBANA DEL TABACO trading as

CUBATABACO and HABANOS S.A.

Defendants by Counterclaim

(Respondents in Appeal)

                                       REASONS FOR JUDGMENT OF THE COURT

(Delivered from the Bench at Toronto, Ontario

on Tuesday, February 26, 2002)

SEXTON J.A.

[1]                 The issue before Gibson J. was confined to the issue of the scale of costs to be awarded to the Appellants as a result of the Respondents discontinuing their action. The issue was argued in two ways.

[2]                 Firstly, it was argued that as a result of the discontinuance, the Appellants were entitled to costs on a solicitor-client scale.

Page: 3

[3]                 Secondly, it was argued that the Appellant was entitled to solicitor-client costs as a result of being entitled to enforce the Respondents' undertaking as to damages. The Church of Jesus Christ of Latter Day Saints v. King 41 O.R. (3^rd) 389 (Ont. C.A.) was relied upon in support of this proposition.

[4]                 Before us it was argued that there should be a reference for an assessment of damages which would be confined to the issue of costs. The original notice of motion in the Trial Division did not seek this relief, nor was there any request for a reference for an assessment of damages before Gibson J. Consequently, it would not be appropriate for this Court to order a reference now.

[5]                 The Respondent argued before us that the undertaking as to damages was not triggered by the Notice of Discontinuance. We disagree. There is ample authority to the contrary.

[6]                 However, we are of the opinion that Gibson J. in declining to order solicitor-client costs, considered the appropriate factors, whether using the test for obtaining solicitor-client costs generally, or using the test set forth by the Ontario Court of Appeal in the King case. It is therefore not necessary for us to decide whether solicitor-client costs can be ordered as damages.

Page: 4

[7]                 Since Gibson J. has given sufficient weight to all of the relevant considerations there is no justification for interfering with the exercise of his discretion.

[8]                 The appeal will be dismissed with costs on a party and party basis.

        "J. E. Sexton"

                                                                                                                                                                J.A.                           

                                       FEDERAL COURT OF CANADA

                                             Names of Counsel and Solicitors of Record

DOCKET:                                               A-777-00

STYLE OF CAUSE:                               HAVANA HOUSE CIGAR & TOBACCO MERCHANTS LTD., EMPRESS CUBANA DEL TABACO trading as

CUBATABACO and HABANOS S.A.

         Plaintiffs

(Respondents in Appeal)

- and -                          

JANE DOE and JOHN DOE and OTHER PERSONS, NAMES UNKNOWN, WHO OFFER FOR SALE, SELL, IMPORT, MANUFACTURE, DISTRIBUTE

ADVERTISE, OR DEAL IN UNAUTHORIZED OR COUNTERFEIT HAVANA HOUSE MERCHANDISE, and 1116270 ONTARIO INC. t/a KOZY KORNER'S, ANTHONY NIGRO, and 714660 ONTARIO INC. t/a COPA-HABANA SMOKE & CIGAR SHOP            

Defendants

(Appellants in Appeal)

-and-

1116270 ONTARIO INC. t/a KOZY KORNER'S,

ANTHONY NIGRO and 714660 ONTARIO INC. t/a

COPA-HABANA SMOKE & CIGAR SHOP

Plaintiffs by Counterclaim

(Appellants in Appeal)

-and-

HAVANA HOUSE CIGAR & TABACCO MERCHANTS LTD., EMPRESS CUBANA DEL TABACO trading as

CUBATABACO and HABANOS S.A.

Defendants by Counterclaim

(Respondents in Appeal)

DATE OF HEARING:              TUESDAY, FEBRUARY 26, 2002

PLACE OF HEARING:                         TORONTO, ONTARIO

REASONS FOR JUDGMENT

OF THE COURT BY:              SEXTON J.A.

DELIVERED FROM THE BENCH AT TORONTO, ONTARIO ON TUESDAY, FEBRUARY 26, 2002.

DATED:                                                   WEDNESDAY, FEBRUARY 27, 2002

APPEARANCES BY:                          Ms. Sally Bryant, and

Mr. John Brown

For the Appellants                                                                                                                            

Ms. Colleen Spring-Zimmerman, and

Ms. May Cheng

For the Respondents

SOLICITORS OF RECORD:           McCarthy Tétrault

Barristers & Solicitors

Suite 4700

Toronto Dominion Bank Tower

Toronto Dominion Centre

Toronto, Ontario

M5K 1E6

For the Appellants

Fasken Martineau Dumoulin LLP

Barristers & Solicitors

Box 20, Suite 2400

Toronto Dominion Bank Tower

Toronto Dominion Centre

Toronto, Ontario

M5K 1N6

For the Respondents

FEDERAL COURT OF APPEAL

Date: 20020227

Docket: A-777-00

BETWEEN:

HAVANA HOUSE CIGAR & TOBACCO MERCHANTS LTD., EMPRESS CUBANA DEL TABACO trading as CUBATABACO and HABANOS S.A.

         Plaintiffs

(Respondents in Appeal)

- and -                          

JANE DOE and JOHN DOE and OTHER PERSONS, NAMES UNKNOWN, WHO OFFER FOR SALE, SELL, IMPORT, MANUFACTURE, DISTRIBUTE ADVERTISE, OR DEAL IN UNAUTHORIZED OR COUNTERFEIT HAVANA HOUSE MERCHANDISE, and 1116270 ONTARIO INC. t/a KOZY KORNER'S, ANTHONY NIGRO, and 714660 ONTARIO INC. t/a COPA-HABANA SMOKE & CIGAR SHOP          

Defendants

(Appellants in Appeal)

-and-

1116270 ONTARIO INC. t/a KOZY KORNER'S, ANTHONY NIGRO and 714660 ONTARIO INC. t/a COPA-HABANA SMOKE & CIGAR SHOP

Plaintiffs by Counterclaim

(Appellants in Appeal)

-and-

HAVANA HOUSE CIGAR & TABACCO MERCHANTS LTD., EMPRESS CUBANA DEL TABACO trading as CUBATABACO and HABANOS S.A.

Defendants by Counterclaim

(Respondents in Appeal)

REASONS FOR JUDGMENT

OF THE COURT

                                                                                          FEDERAL COURT OF CANADA

                                             Names of Counsel and Solicitors of Record

DOCKET:                                               A-777-00

STYLE OF CAUSE:                               HAVANA HOUSE CIGAR & TOBACCO MERCHANTS LTD., EMPRESS CUBANA DEL TABACO trading as

CUBATABACO and HABANOS S.A.

         Plaintiffs

(Respondents in Appeal)

- and -                          

JANE DOE and JOHN DOE and OTHER PERSONS, NAMES UNKNOWN, WHO OFFER FOR SALE, SELL, IMPORT, MANUFACTURE, DISTRIBUTE

ADVERTISE, OR DEAL IN UNAUTHORIZED OR COUNTERFEIT HAVANA HOUSE MERCHANDISE, and 1116270 ONTARIO INC. t/a KOZY KORNER'S, ANTHONY NIGRO, and 714660 ONTARIO INC. t/a COPA-HABANA SMOKE & CIGAR SHOP            

Defendants

(Appellants in Appeal)

-and-

1116270 ONTARIO INC. t/a KOZY KORNER'S,

ANTHONY NIGRO and 714660 ONTARIO INC. t/a

COPA-HABANA SMOKE & CIGAR SHOP

Plaintiffs by Counterclaim

(Appellants in Appeal)

-and-

HAVANA HOUSE CIGAR & TABACCO MERCHANTS LTD., EMPRESS CUBANA DEL TABACO trading as

CUBATABACO and HABANOS S.A.

Defendants by Counterclaim

(Respondents in Appeal)

DATE OF HEARING:              TUESDAY, FEBRUARY 26, 2002

PLACE OF HEARING:                         TORONTO, ONTARIO

REASONS FOR JUDGMENT

OF THE COURT BY:              SEXTON J.A.

DELIVERED FROM THE BENCH AT TORONTO, ONTARIO ON TUESDAY, FEBRUARY 26, 2002.

APPEARANCES BY:                          Ms. Sally Bryant, and

Mr. John Brown

For the Appellants                                                                                                                            

Ms. Colleen Spring-Zimmerman, and

Ms. May Cheng

For the Respondents

SOLICITORS OF RECORD:           McCarthy Tétrault

Barristers & Solicitors

Suite 4700

Toronto Dominion Bank Tower

Toronto Dominion Centre

Toronto, Ontario

M5K 1E6

For the Appellants

Fasken Martineau Dumoulin LLP

Barristers & Solicitors

Box 20, Suite 2400

Toronto Dominion Bank Tower

Toronto Dominion Centre

Toronto, Ontario

M5K 1N6

For the Respondents

FEDERAL COURT OF APPEAL

Date: 20020227

Docket: A-777-00

BETWEEN:

HAVANA HOUSE CIGAR & TOBACCO MERCHANTS LTD., EMPRESS CUBANA DEL TABACO trading as CUBATABACO and HABANOS S.A.

         Plaintiffs

(Respondents in Appeal)

- and -                          

JANE DOE and JOHN DOE and OTHER PERSONS, NAMES UNKNOWN, WHO OFFER FOR SALE, SELL, IMPORT, MANUFACTURE, DISTRIBUTE ADVERTISE, OR DEAL IN UNAUTHORIZED OR COUNTERFEIT HAVANA HOUSE MERCHANDISE, and 1116270 ONTARIO INC. t/a KOZY KORNER'S, ANTHONY NIGRO, and 714660 ONTARIO INC. t/a COPA-HABANA SMOKE & CIGAR SHOP          

Defendants

(Appellants in Appeal)

-and-

1116270 ONTARIO INC. t/a KOZY KORNER'S, ANTHONY NIGRO and 714660 ONTARIO INC. t/a COPA-HABANA SMOKE & CIGAR SHOP

Plaintiffs by Counterclaim

(Appellants in Appeal)

-and-

HAVANA HOUSE CIGAR & TABACCO MERCHANTS LTD., EMPRESS CUBANA DEL TABACO trading as CUBATABACO and HABANOS S.A.

Defendants by Counterclaim

(Respondents in Appeal)

REASONS FOR JUDGMENT

OF THE COURT