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Date: 19991230


Docket: T-1629-98


MONTREAL, QUEBEC, THIS 30th DAY OF DECEMBER 1999

PRESENT: RICHARD MORNEAU, ESQ., PROTHONOTARY



Between:

     CORETECH-SONOCO LIMITED

     Plaintiff

     AND

     CSI CORE SPECIALTIES INC.

     Defendant


     _______________________________________


     CSI CORE SPECIALTIES INC.

     Plaintiff by Counterclaim

     AND

     CORETECH-SONOCO LIMITED

     Defendant by Counterclaim



     REASONS FOR ORDER AND ORDER




RICHARD MORNEAU, ESQ., PROTHONOTARY:

[1]      This is a motion by the Defendant (and Plaintiff by Counterclaim) to amend its Defence to include a final paragraph asking for dismissal of the Plaintiff's action, and to amend its Counterclaim to include a cause of action based upon the Plaintiff's alleged false and misleading representations tending to discredit the business and wares of the Defendant.

[2]      As to the amendment to the Defence, it has not been contested by the Plaintiff and it merits to be granted without more debate.

[3]      As to the amendment to the Counterclaim, it cannot be granted in my view because contrary to rule 201 of the Federal Court Rules, 1998, the Defendant's new cause of action cannot be considered as arising out of substantially the same facts as its existing Counterclaim.

[4]      Rule 201 reads as follows:

     201. An amendment may be made under rule 76 notwithstanding that the effect of the amendment will be to add or substitute a new cause of action, if the new cause of action arises out of substantially the same facts as a cause of action in respect of which the party seeking the amendment has already claimed relief in the action.
(my underlining)

[5]      The Defendant's existing Counterclaim deals with the alleged passing off by the Plaintiff of its metal end caps and with nothing else substantially. (See Francoeur v. Canada, [1992] 2 F.C. 333, at 337, where the Court of Appeal considered the application of former rule 427, the predecessor of rule 201. See also Martel Building Ltd. v. Canada, [1998] 4 F.C. 300, at 313 par. 24.)

[6]      Costs of this motion to the Plaintiff.


Richard Morneau

     Prothonotary

     FEDERAL COURT OF CANADA

     NAMES OF COUNSEL AND SOLICITORS OF RECORD



COURT NO.:

STYLE OF CAUSE:

T-1629-98

CORETECH-SONOCO LIMITED

     Plaintiff

AND

CSI CORE SPECIALTIES INC.

     Defendant

     __________________________

CSI CORE SPECIALTIES INC.

     Plaintiff by Counterclaim

AND

CORETECH-SONOCO LIMITED

     Defendant by Counterclaim



PLACE OF HEARING:Montreal, Quebec

DATE OF HEARING:December 20, 1999

REASONS FOR ORDER BY RICHARD MORNEAU, ESQ., PROTHONOTARY

DATE OF REASONS FOR ORDER:December 30, 1999



APPEARANCES:


Ms. Elyssa N. Wortzman

for the Plaintiff/Defendant by Counterclaim

Mr. Richard S. Levy

for the Defendant/Plaintiff by Counterclaim

SOLICITORS OF RECORD:

Blake, Cassels & Graydon

Ms. Elyssa N. Wortzman

Toronto, Ontario

for the Plaintiff/Defendant by Counterclaim

Spiegel Sohmer

Mr. Richard S. Levy

Montreal, Quebec

for the Defendant/Plaintiff by Counterclaim

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