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Havana House Cigar & Tobacco Merchants Ltd. v. Naeini

T-323-97

Jerome A.C.J.

25/9/97

4 pp.

Motion for order to reverse A.S.P.'s order dismissing motion to strike references to Competition Act in defendants' pleadings-Statement of defence, counterclaim asserting plaintiffs acting contrary to Competition Act, s. 45, liable for damages pursuant to s. 36-Plaintiffs asserting s. 45 breach criminal act and as no criminal proceedings initiated, improper for Court to entertain such arguments-Whether s. 36 permitting party to pursue civil action for breach of s. 45, independent of any criminal proceedings-Plaintiffs submitting words "conduct contrary to any provision of Part VI" in s. 36, and focus in Part VI on indictable offences, meaning s. 36 not independent cause of action, no relief can be sought pursuant to that section in absence of prior or concurrent criminal proceedings-Asserting since s. 45 dealing with criminal activity, Court cannot find conduct contrary to that section unless conviction-Defendants submitting s. 36 not requiring criminal conviction-Relying on General Motors of Canada Ltd. v. City National Leasing, [1989] 1 S.C.R. 641, where, in course of determining constitutional validity of s. 36, Dickson C.J. finding Act containing civil, administrative, criminal sanctions intended to deter anti-competitive behaviour unlike predecessor legislation containing only criminal sanctions-Civil administrative sanctions introduced to reduce Competition Act's reliance on criminal law to advance goals-Recognizing Competition Act evolved beyond point when competition law relying heavily on criminal law to point where civil actions could be instituted to achieve similar policy objectives-Dickson C.J.'s approval of MacGuigan J.A.'s reasons in Attorney General of Canada v. Québec Ready Mix Inc., [1985] 2 F.C. 40 (C.A.) suggesting independent civil action could be pursued pursuant to s. 36-MacGuigan J.A. holding s. 36 giving any person suffering injury as result of commission of act proscribed by Part VI right to institute, independently of any criminal proceedings, action in Federal Court for compensation against perpetrators of any such act-Plaintiffs submitting Federal Court unable to determine issues arising under ss. 36, 45 as s. 67(3) giving jurisdiction over proceedings under Part VI to superior courts of criminal jurisdiction-S. 67 dealing with procedure to follow with respect to criminal sanctions in Act-Procedure pursuant to s. 36 civil remedy, not subject to s. 67-Further, s. 36(3) clearly stating Federal Court having jurisdiction over matters arising pursuant to s. 36(1)-Competition Act, R.S.C., 1985, c. C-34, ss. 36 (as am. by R.S.C., 1985 (4th Supp.), c. 1, s. 11), 45 (as am. by R.S.C., 1985 (2nd Supp.), c. 19, s. 30), 67.

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