SOLE ALLEGATION OF IRREPARABLE HARM

SOLE ALLEGATION OF IRREPARABLE HARM INSUFFICIENT TO JUSTIFY
INTERLOCUTORY INJUCTION
by
Barry Gamache
LEGER ROBIC RICHARD, Lawyers
ROBIC, Patent & Trademark Agents
Centre CDP Capital
1001 Square-Victoria - Bloc E – 8th Floor
Montreal, Quebec, Canada H2Z 2B7
Tel.: (514) 987 6242 - Fax: (514) 845 7874
www.robic.ca - [email protected]
On January 24th, 1994, Canada's Federal Court of Appeal restated the rule
that evidence as to irreparable harm must be clear and not speculative
when considering the granting of an interlocutory injunction (National Hockey
League et al. v. Centre Ice Limited, F.C.A. No. A-696-93, January 24, 1994).
Alleged misuse of the names CENTER ICE and AUTHENTIC CENTER ICE
COLLECTION provide the backdrop for the Court's ruling: Plaintif Centre Ice
Limited specialized in the sale of hockey equipment and, since 1986, sold
various articles including hockey pants, hockey jerseys, athletic shorts and Tshirts under the trade-mark CENTRE ICE in the province of Alberta. Defendant
NHL Services, Inc., acting as agent for co-defendant National Hockey
League, had been responsible for licensing the trade-mark CENTER ICE in
relation to various goods.
Centre Ice Limited commenced an action for, inter alia, damages for
passing-off and an injunction, both interim and permanent, to restrain the
defendants from using the names CENTER ICE and AUTHENTIC CENTER ICE
COLLECTION. A Motions Judge made an order granting an interlocutory
injunction restraining the Defendant's activities in relation with the names
CENTER ICE and AUTHENTIC CENTER ICE COLLECTION as he considered that
the plaintiff had established that there was a serious issue to be tried, that the
plaintiff would suffer irreparable harm if the injunction were not granted and
that the balance of convenience favored the plaintiff.
The defendants appealed from that order before the Federal Court of
Appeal and pleaded that the finding of irreparable harm by the learned
Motions Judge was not supported by the evidence before the Court. On the
issue of irreparable harm, Mr. Justice Heald, writing for the Court, reviewed
caselaw on the matter [Cutter Ltd. v. Baxter Travenol Laboratories Ltd., (1980),
47 C.P.R. (2d) 53 at 57; Imperial Chemical Industries PLC v. Apotex Inc. (1989)
27 C.P.R. (3d) 345 at 351 (F.C.A.); Syntex Inc. v. Novopharm Ltd. (1991) 36
C.P.R. (3d) 129 at 135; Nature Co. v. Sci-Tech Education (1992) 41 C.P.R. (3d)
359 at 367 (F.C.A.)] and concluded that the evidence submitted must support
a finding that a plaintiff would suffer irreparable harm in order to warant the
granting of an interlocutory injunction.
Commenting on the evidence in the case at issue, Mr. Justice Heald noted
that the only allegation relating to irreparable harm was contained in the
affidavit in the plaintiff's director who indicated : "I believe that unless the
N.H.L. is stopped from using the name "Center Ice" within the trading area of
Centre Ice here in Alberta irreparable harm to Centre Ice will result."
Mr. Justice Heald further stated that this allegation of irreparable harm
appeared to be sustained only by evidence of the confusion between the
parties' trade-marks. However, as stated by the Court's jurisprudence,
confusion does not, per se, result in a loss of goodwill and a loss of goodwill
does not, per se, establish irreparable harm not compensable in damages.
Therefore, as noted by Mr. Justice Heald, the loss of goodwill and the resulting
irreparable harm cannot be presumed, but must be established by "clear
evidence" which was found lacking in this matter. The Court therefore
allowed the appeal and set aside the Motions Judge's order.
The Court noted that irreparable harm might be found should proof of an
impeached reputation or loss of specific specific customers be established.
The Court's decision is yet another brick in the ever expanding wall which
makes it very difficult for a plaintiff in Canada to obtain an interlocutory
injunction in I.P. infringement cases unless "clear evidence" of irreparable
harm issubmitted.
Published at (1994), 8 W.I.P.R. 119 under the title Allegation of Irreparable
Insufficient For Interlocutory Injunction.
© LEGER ROBIC RICHARD / ROBIC, 1994.
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