Allegation of Irreparable Insufficient for Interlocutory Injunction

1994-01-01

SOLEALLEGATIONOFIRREPARABLEHARMINSUFFICIENTTOJUSTIFY
INTERLOCUTORYINJUCTION

by
BarryGamache
LEGERROBICRICHARD,Lawyers
ROBIC,Patent&TrademarkAgents
CentreCDPCapital
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Tel.:(514)9876242-Fax:(514)8457874
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OnJanuary24th,1994,Canada’sFederalCourtofAppealrestatedtherule
thatevidenceastoirreparableharmmustbeclearandnotspeculative
whenconsideringthegrantingofaninterlocutoryinjunction(NationalHockey
Leagueetal.v.CentreIceLimited,F.C.A.No.A-696-93,January24,1994).
AllegedmisuseofthenamesCENTERICEandAUTHENTICCENTERICE
COLLECTIONprovidethebackdropfortheCourt’sruling:PlaintifCentreIce
Limitedspecializedinthesaleofhockeyequipmentand,since1986,sold
variousarticlesincludinghockeypants,hockeyjerseys,athleticshortsandT-
shirtsunderthetrade-markCENTREICEintheprovinceofAlberta.Defendant
NHLServices,Inc.,actingasagentforco-defendantNationalHockey
League,hadbeenresponsibleforlicensingthetrade-markCENTERICEin
relationtovariousgoods.
CentreIceLimitedcommencedanactionfor,interalia,damagesfor
passing-offandaninjunction,bothinterimandpermanent,torestrainthe
defendantsfromusingthenamesCENTERICEandAUTHENTICCENTERICE
COLLECTION.AMotionsJudgemadeanordergrantinganinterlocutory
injunctionrestrainingtheDefendant’sactivitiesinrelationwiththenames
CENTERICEandAUTHENTICCENTERICECOLLECTIONasheconsideredthat
theplaintiffhadestablishedthattherewasaseriousissuetobetried,thatthe
plaintiffwouldsufferirreparableharmiftheinjunctionwerenotgrantedand
thatthebalanceofconveniencefavoredtheplaintiff.
ThedefendantsappealedfromthatorderbeforetheFederalCourtof
Appealandpleadedthatthefindingofirreparableharmbythelearned
MotionsJudgewasnotsupportedbytheevidencebeforetheCourt.Onthe
issueofirreparableharm,Mr.JusticeHeald,writingfortheCourt,reviewed
caselawonthematter[CutterLtd.v.BaxterTravenolLaboratoriesLtd.,(1980),
47C.P.R.(2d)53at57;ImperialChemicalIndustriesPLCv.ApotexInc.(1989)
27C.P.R.(3d)345at351(F.C.A.);SyntexInc.v.NovopharmLtd.(1991)36

C.P.R.(3d)129at135;NatureCo.v.Sci-TechEducation(1992)41C.P.R.(3d)
359at367(F.C.A.)]andconcludedthattheevidencesubmittedmustsupport
afindingthataplaintiffwouldsuffer
irreparableharminordertowarantthe
grantingofaninterlocutoryinjunction.
Commentingontheevidenceinthecaseatissue,Mr.JusticeHealdnoted
thattheonlyallegationrelatingtoirreparableharmwascontainedinthe
affidavitintheplaintiff’sdirectorwhoindicated:”Ibelievethatunlessthe
N.H.L.isstoppedfromusingthename”CenterIce”withinthetradingareaof
CentreIcehereinAlbertairreparableharmtoCentreIcewillresult.”
Mr.JusticeHealdfurtherstatedthatthisallegationofirreparableharm
appearedtobesustainedonlybyevidenceoftheconfusionbetweenthe
parties’trade-marks.However,asstatedbytheCourt’sjurisprudence,
confusiondoesnot,perse,resultinalossofgoodwillandalossofgoodwill
doesnot,perse,establishirreparableharmnotcompensableindamages.
Therefore,asnotedbyMr.JusticeHeald,thelossofgoodwillandtheresulting
irreparableharmcannotbepresumed,butmustbeestablishedby”clear
evidence”whichwasfoundlackinginthismatter.TheCourttherefore
allowedtheappealandsetasidetheMotionsJudge’sorder.
TheCourtnotedthatirreparableharmmightbefoundshouldproofofan
impeachedreputationorlossofspecificspecificcustomersbeestablished.
TheCourt’sdecisionisyetanotherbrickintheeverexpandingwallwhich
makesitverydifficultforaplaintiffinCanadatoobtainaninterlocutory
injunctioninI.P.infringementcasesunless”clearevidence”ofirreparable
harmissubmitted.
Publishedat(1994),8W.I.P.R.119underthetitleAllegationofIrreparable
InsufficientForInterlocutoryInjunction.
LEGERROBICRICHARD,1994.

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