PRACTICE |
Discovery |
Production of Documents |
Altagas Marketing Inc. v. Canada
T-85-03
2004 FC 1682, Hargrave P.
30/11/04
17 pp.
Motion by Crown for production of documents dealing with plaintiffs' knowledge, expectations as to royalty rate required to pay--Motion brought in context of action by plaintiffs, holders of petroleum production licence, seeking vacation of royalties assessment on basis improperly calculated-- Although possible to conclude that since defendant allowed to amend defence to plead rescission of licence, there exists sufficient support for relevancy of document bearing on knowledge, expectations as these concepts part of test for rescission of contract, further analysis of relevancy, usefulness of material requested necessary--Plaintiffs' submission defence not raising issue of contract rejected as no longer necessary to select form of action, to exclusion of others, in pleading--Here, sufficient that defence sets out particulars of underlying document, facts leading to named alternative reliefs--Nature of a licence, remedies where mistake, reviewed--Rescission, as equitable remedy, depending in part upon establishing actual or constructive knowledge of non-mistaken party as to alleged mistake--Parol evidence rule not preventing extrinsic evidence from being used where mistake at issue in context of invalidating contract--Crown's mistake, plaintiffs' knowledge, actual or constructive, relevant--Actual constructive knowledge of proper royalty rate relevant, as enforcement of contract should be denied where parties seeking to enforce contract having no reasonable expectation of particular benefit--Here, documents requested by defendant reasonably supposed to contain information enabling defendant to demonstrate plaintiffs' knowledge, expectations, assumptions, calculations or projections of applicable royalty rate--Federal Court Rules, s. 233 requiring production of relevant documents--Based on case law, relevance not matter of discretion but legal principle requiring party to produce documents which may enable party requiring production to advance own case, damage case of adversary-- Relevance to be assessed in light of issues raised in pleadings, yet construed generously or with fair latitude--Scope of examination for discovery governed by issues raised in pleadings--Here, knowledge clearly defined as factor leading to rescission--Documents requested may allow defendant to advance case for rescission, thus relevant--Motion allowed-- Federal Court Rules, 1998, SOR/98-106, s. 233.