COURT FILE NO.: CV-19-00625631

DATE: 20210712

SUPERIOR COURT OF JUSTICE - ONTARIO

RE: LOTO-QUEBEC, ONTARIO LOTTERY AND GAMING CORPORATION, ATLANTIC LOTTERY CORPORATION INC., BRITISH COLUMBIA LOTTERY CORPORATION, and WESTERN CANADA LOTTERY CORPORATION Plaintiffs

AND:

LOTOLAND LTD. and EU LOTTO LTD. Defendants

BEFORE: Mr. Justice Chalmers

COUNSEL: A. Bernstein, Y. Bienenstock and A. Puchta, for the Plaintiffs

HEARD: June 28, 2021, by writing

ENDORSEMENT

[1] The Plaintiffs are Canadian lotteries that are authorized under the Criminal Code and provincial legislation to conduct and manage lottery schemes in their respective provinces and territories. Each of the Plaintiffs has the exclusive right to access the market for lottery services in its respective jurisdiction.

[2] The Defendants operate a global online lottery business. The Defendants’ lottery schemes are available to Canadian customers. The Plaintiffs allege that the Defendants’ schemes are not permitted by the Criminal Code and are therefore illegal in Canada. The Plaintiffs allege that the Defendants have interfered with the Plaintiffs’ exclusive right to access the Canadian lottery market.

[3] The Plaintiffs bring this action seeking damages or alternatively disgorgement of profits for the Defendants’ breach of the Completion Act and unlawful interference with the Plaintiffs’ economic relations. The Plaintiffs are also seeking an injunction enjoining the Defendants from marketing or selling their products and services to Canadian customers, an order requiring the Defendants to remove references to Canada from its website and requiring the Defendants to prevent Canadians from accessing its website or purchasing its products and services.

[4] The Statement of Claim was issued on August 15, 2019. The Defendants are based in Gibraltar. The Plaintiffs served the Statement of Claim on the Defendants by registered mail on December 4, 2019 and personally by process server on December 11, 2019. The Plaintiffs also served the Defendants by the central authority of Gibraltar under the Hague Service Convention on February 7, 2020. The Defendant did not respond to the Statement of Claim or file a Statement of Defence. The Defendants were noted in default on December 23, 2020.

[5] The Plaintiffs bring this motion for default judgment. The Plaintiffs take the position that the Defendants are deemed to admit the truth of all allegations of fact made in the Statement of Claim, pursuant to R. 19.02. The Plaintiffs state that the deemed admissions support each of the claimed breaches and entitles the Plaintiffs to the remedies sought.

[6] It is not clear from the material filed in support of the motion that the Defendants were served with the Motion for Default Judgment.

[7] Technically a defendant noted in default is not entitled to notice of any step in an action. However, Rule 19.02 (3) leaves notice to the discretion of the court. Beals v. Saldanha, 2003 SCC 72, at para. 115. The best practice is to serve a Motion for Default Judgment on the defendants. Serving the default judgment motion materials, ensures that the defendants know the claim is about to be considered by the court for the purpose of issuing judgment: Casa Manila Inc. v. Iannuccilli, 2018 ONSC 7083, para. 14 -17.

[8] The Plaintiffs shall serve its Motion Record on the Defendants, together with a copy of this Endorsement. The Motion Record shall include the Noting in Default and the form of Judgment sought by the Plaintiffs. The Plaintiffs are to serve the Defendants by registered mail to the last known address of the Defendants, which according to the motion materials is: Suite A, Ocean Village Promenade, Ocean Village, Gibraltar. Service is to be carried out within 7 days of the date of this endorsement. Following service of the Motion Record, the Plaintiffs will file the Affidavit of Service in Caselines.

[9] The Defendants shall have 14 days from the date of service to respond to the Claim. If the Defendants do not respond within that time period, the motion will proceed in writing the week of August 3, 2021.

[10] I remain seized.

Date: July 12, 2021