2 total
Substantial indemnity costs of $225,000 awarded due to defendants' brazen breach of settlement and reprehensible litigation tactics.
Following a summary judgment finding the defendants liable for breaching two settlement agreements by importing and selling goods bearing the plaintiff's trademarks, the plaintiff sought costs on a substantial indemnity basis.
The court found that the defendants brazenly breached their agreements and engaged in reprehensible litigation tactics that maximized costs and delay.
The court awarded the plaintiff costs of $225,000 on a substantial indemnity basis.
Settlement covenants against grey marketing were enforced on summary judgment.
The plaintiff brought a summary judgment motion arising from alleged breaches of two settlement agreements prohibiting grey marketing of branded products in Canada.
The court rectified a misnamed party in the first settlement, held that the corporate defendants and the individual defendant were bound by and in breach of their respective settlement agreements, and rejected the defence that the agreements were void restraints of trade.
In applying the restraint of trade analysis, the court emphasized the settlement context, the plaintiff’s statutory rights as registered trade-mark owner, and the illegality of the imported products under federal labelling and packaging law.
Declaratory relief was granted, damages were referred to a Master for quantification, punitive damages were refused, and only a limited counterclaim remained.
