PRACTICE |
Res Judicata |
351694 Ontario Ltd. v. Paccar of Canada Ltd.
T-1263-93
2004 FC 1442, von Finckenstein J.
19/10/04
8 pp.
Motion for dismissal of resale price maintenance action on basis of res judicata--Paccar of Canada Ltd. (Paccar) commenced proceedings in Ontario Court against plaintiffs, principals (Belziles and dealerships) for fraud, passing off, unlawful interference with economic interests, loss of reputation, punitive damages--Also sought injunctive relief restraining Belziles and dealerships from instituting proceedings against customers, former customers, end users of Paccar's products--Belziles and dealerships delivered statement of defence and counterclaim claiming punitive damages, alleging damages for "wrongful termination" and "wrongful interference" by Paccar--Ontario Court granting Paccar interim injunction and injunction becoming permanent when case resolved--Parties' claim for damages, counterclaim dismissed on consent by judgment and parties entering into minutes of settlement--Whether settlement in Ontario action grounds for dismissing Federal Court action on res judicata basis--Doctrine of res judicata having two branches: cause of action estoppel and issue estoppel--Issue, once decided, should not generally be re-litigated to benefit of losing party and harassment of winner, underlying philosophy for issue estoppel--Three preconditions for application of res judicata and issue estoppel: (1) same question decided; (2) judicial decision said to create estoppel final; (3) parties to decision same as parties to proceedings in which estoppel raised--Ontario Court consent judgment ending action--For purposes of res judicata doctrine, consent judgments having same effect as judgment issued by court after trial or hearing--Res judicata rule providing that where litigant fails to raise issue in proceeding where issue should or could have been raised, litigant forever barred from raising issue again, barring special circumstances--Special circumstances found in present case--Federal Court action raising issues involving legislation not pleaded in Ontario action--Minutes of settlement containing no admissions, contemplating prosecu-tion of case in Federal Court although further action not explicitly written--Application dismissed.