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T-4977-79
Nationwide Relocation Service, Inc. (Applicant)
v.
Nationwide Group Realty Ltd. (Respondent)
Trial Division, Walsh J.—Ottawa, June 26 and 27, 1980.
Practice — Motion for default judgment — Motion was served on respondent's solicitors who did not appear to contest application — Respondent did not appear — Whether or not default judgment may be rendered ex parte pursuant to Rule 437 — Motion allowed, provided that no action to strike out trade mark is taken until 30 days after service of order on respondent.
Peterson v. The Crown Cork and Seal Co. (1895-97) 5 Ex.C.R. 400, followed.
MOTION. COUNSEL:
Robert D. Gould for applicant. No one appearing for respondent.
SOLICITORS:
Smart & Biggar, Ottawa, for applicant. McCarthy & McCarthy, Toronto, for respondent.
The following are the reasons for order ren dered in English by
WALSH J.: The proceedings herein were com menced by an originating notice of motion dated October 19, 1979, and seek the striking out of two trade mark registrations of respondent on the grounds set out therein.
Respondent has not appeared to contest but applicant served two affidavits on the solicitors appearing for respondent in this application for the said trade marks, namely an affidavit of Jack Hull sworn on December 5, 1979 and an affidavit of William P. Niemann sworn on October 31, 1979, on both of which the said solicitors admitted ser vice. Two other affidavits, namely those of James Robert Gairdner sworn on January 17, 1980, and Frank A. Hodges sworn on November 27, 1979, were not admitted for service by the said solicitors.
The motion now before the Court is for an order pursuant to Rule 704 permitting applicant to file its said affidavit evidence as well as certified copies of trade mark registrations 204,114 and 202,656 and the certified copy of the file history relating to Canadian trade mark application No. 384,241 and secondly for judgment by default striking out respondent's registrations 202,656 and 204,114.
On the day of the hearing a letter was produced from respondent's said solicitors stating that they no longer have any instructions to act in the matter.
While the affidavits sought to be produced were not produced within the delays provided by Rule 704, paragraph (8) gives the Court discretion to permit their production. An order from the Court is therefore necessary and will be given.
With respect to the default judgment sought however the situation is somewhat different. Default judgment on proceedings of this sort would have to be rendered pursuant to Rule 437, While applicant contends that such a judgment may be rendered ex parte I do not consider that that is the case here. In fact applicant did serve notice of motion on respondent's said solicitors McCarthy & McCarthy. While it is correct to say that they were originally served with the originat ing notice of motion merely because they repre sented respondent in its application for the said trade marks, they did accept service of two affida vits on behalf of respondent and entered into corre spondence on its behalf with applicant's attorneys; and there is in the record produced with an affida vit of Franca Santagati a letter from them indicat ing that due to a potential conflict of interest they have advised respondent to seek other counsel. Apparently no action was taken on this and they must therefore be considered as attorneys of record pursuant to Rule 300(3) until steps are taken by them pursuant to Rule 300(5) to with draw formally from the record.
Since it is evident that neither respondent nor the said attorneys have taken any steps indicating an intention to contest, however, it would be unreasonable to oblige applicant to wait further for judgment. There is some authority (see Peter- son v. The Crown Cork and Seal Company (1895- 97) 5 Ex.C.R. 400) for rendering a default judg ment to be served on respondent but not acted on by the Registrar until 30 days after service so as to give respondent if so desired an opportunity to seek to set aside or vary the said judgment pursuant to Rule 439(3). If no such action has been taken within 30 days after such service both on solicitors for respondent, McCarthy & McCarthy and respondent itself, then the judgment shall take effect and the relief sought will be granted without any further action being taken by applicant or the Court.
ORDER
1. The applicant may file its affidavit evidence and other documents referred to in the notice of motion herein.
2. Judgment is rendered in favour of applicant by default striking out respondent's registration No. 202,656 for the trade mark "Nationwide" and 204,114 for the trade mark "Nationwide and Design", with costs, on the following conditions:
This order shall be served on respondent and on Messrs. McCarthy & McCarthy, attorneys of record for respondent but no action shall be taken thereon to strike out the said trade marks until 30 days after such service.
In the event that within the said delay no steps have been taken by or on behalf of respondent pursuant to Rule 439(3) to vary or set aside this judgment it will automatically take effect without further action being necessary by applicant.
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