Decision

Beam Suntory Inc. v. Domaines Pinnacle Inc., 2016 FCA 212

Justice Pelletier; Justice Gauthier; Justice Scott - 2016-08-31

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The appellants Beam Suntory Inc., Beam Canada Inc., and Jim Beam Brands Co. (referred to collectively as “Beam”) were sued in the Federal Court and in the Superior Court of Quebec by the respondent Domaines Pinnacle Inc. (“Domaines”) with respect to trademark issues arising from the use of the word Pinnacle in connection with the sale of alcoholic beverages. As the trial date in the Federal Court approached, the parties had settlement discussions which led to Beam making an offer to settle pursuant to Rule 420 of the Federal Courts Rules, SOR/98-106, pursuant to which the claim and counterclaim in the Federal Court action would be discontinued with each party to bear its own costs. This offer was accepted but a dispute arose as to whether the offer also included the discontinuance of the Superior Court action. Beam says it did; Domaines says it did not. Each party brought a motion before the Federal Court seeking to have its position ratified. In reasons reported as 2015 FC 680, the Federal Court Judge concluded that there was a settlement of the Federal Court action and counterclaim but that the Superior Court action was not settled. As a result, he ordered a permanent stay of proceedings with respect to Beam’s counterclaim. Beam now appeals from this decision. For the reasons which follow, I would dismiss the appeal.

Decision relates to:

 

Canadian Intellectual Property