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The Court of Appeal set aside an order enforcing a U.S. Letter of Request that compelled a non-party to produce confidential financial information for a speculative damages calculation.
The Ontario Court of Appeal allowed an appeal concerning the enforcement of a Letter of Request (LoR) from a U.S. court.
The LoR sought confidential financial and valuation documents from Matvil Corp., a non-party, to assist Actava TV, Inc.'s damages expert in a U.S. action using a "yardstick" method.
The Court found that the application judge erred in her relevance and public policy analyses, and failed to adequately consider Canadian sovereignty.
The requested information was deemed overly broad, speculative, and not directly relevant to the material issues in the U.S. action, and its disclosure would be contrary to Canadian public policy given the sensitive nature of the data and the inadequacy of protective orders.
