Department of Justice
Competition Law Division
Last update: December 21, 2009
*For information mentioned in previous Litigation Reports, please visit the Archives page.
Summary of Cases
Civil Matters
Please note that the following proceedings have not all been adjudicated upon by a court of law. Until the allegations in each of the following proceedings have been proven beyond a reasonable doubt, all the accused are to be presumed innocent until proven guilty according to law.
Canadian Radio-Television and Telecommunications Commission
Assigned Counsel: J. Palumbo
Opposing Counsel: 48 Intervenors
Nature of Matter: Intervention under s. 125 of the Competition Act in respect of a review of the regulatory framework for wholesale services and definition of essential service.
Status: Hearing held from October 9 to 17 and 26 to 30 and the closing oral arguments held on November 9, 2007; decision released on March 3, 2008; Bell et al. filed leave to appeal. Appeal proceeding before the Federal Court is ongoing.
Hyperlink:
http://www.crtc.gc.ca/eng/archive/2006/pt2006-14.htm
http://www.crtc.gc.ca/eng/archive/2008/dt2008-17.htm
Competition Tribunal (Vancouver)
Assigned Counsel: J. Syme
Opposing Counsel: S.L. Swan (Harper Gray – Vancouver)
Nature of Matter: The Commissioner filed an application under s.74.1 of the Competition Act against the Respondents. The Commissioner alleges that the Respondents made false and misleading representations to prospective clients. The Respondents promised to give the prospective clients exclusive contacts with potential employers if they entered into contract with them. The Respondents also promised to help them find work quickly, with better salary and benefits.
Status: On May 8, 2007, the Commissioner filed a Notice of Application. The hearing was on April 14 to 25, 2008, in Vancouver; Decision was released on July 15, 2008. The tribunal dismissed the Application. Notice of Appeal was filed by the Commissioner on September 30, 2008. On October 16, 2009, the Federal Court granted the Competition Bureau’s appeal.
Hyperlink:
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/02326.html
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03144.html
Please note that the following proceedings have not all been adjudicated upon by a court of law. Until the allegations in each of the following proceedings have been proven beyond a reasonable doubt, all the accused are to be presumed innocent until proven guilty according to law.
Cour du Québec (Montreal)
Assigned Counsel: S. Hould
Opposing Counsel: E. Vanchestein (Shadley Battista)
Nature of Matter: false representations under s. 52 of the Competition Act
Status: Judicial Pre-Trial scheduled for January 13, 2010.
Ontario Court of Justice (Toronto)
Assigned Counsel: G. Reitz (ORO), G. Caracciolo
Opposing Counsel: D. Bains, C. Granek (Bains, Granek)
Nature of Matter: charges under s. 52 of the Competition Act and s. 380 of the Criminal Code relating to alleged false or misleading representations and fraud over $5000 with respect to an alleged therapy for cancer which involves exposing cancer patients to low level electromagnetic wave therapy.
Status: charges laid: August 2005;
On December 5, 2008, Mr. Reynolds was committed for trial on all charges. Charges against Mr. Armstrong stayed at request of the Crown. Four week trial scheduled to commence on April 6, 2010.
Ontario Superior Court (Toronto)
Assigned Counsel: J. Marshall, L. Strezos, C. Black
Opposing Counsel: B. Greenspan, S. Lavine, D. Lighter, J. Gordon, D. Moore, D. Soos, C. Paliare
Nature of Matter: charges under s. 52, s. 52.1 of the Competition Act and s. 465(1)(c) and s. 380 of the Criminal Code relating to the telemarketing of a business to business directory and listing in such directory.
Status: first appearance on July 12, 2006 in the Old City Hall Courthouse in Toronto;
On April 24, 2008, Mr. Barnard pleaded guilty to six criminal charges and received a two-year conditional jail sentence.
Preliminary hearing was held April 29 to May 6, 2008.
Committal for trial obtained on all Competition Act charges for all remaining accused. On July 27, 2009, Mr. Fromstein pleaded guilty to five criminal charges and received a two–year sentence in a federal penitentiary as well as a probation of three years. On December 18, 2009, the Court imposed a $15 million fine against Datacom Marketing Inc.
Hyperlink:
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/02666.html
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03112.html
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03175.html
Alberta Court of Queen's Bench
Assigned Counsel: P. Papadatou; Alta. Jus. Special Prosecutions; J. Ma
Opposing Counsel: : D. Mohr (Savage Silver Kiss & Virk); D. Chow; R. Snukal (Roulston Snukal); A. Fay (Fay & Archer); J. Lutz (Dartnell & Lutz)
Nature of Matter: charges under s.52.1 of the Competition Act and s.380 of the Criminal Code relating to the telemarketing of a business directory and listing in such directory.
Status: Charges laid June 14, 2006.
On January 30, 2007, Sarah Schaefer pleaded guilty to two counts of s.52.1 of the Competition Act and received a fine of $15,000;
Preliminary hearing was in June 2008; Janene Cheung was discharged at the end of the preliminary hearing;
First appearance before the Alberta Court of Queen's Bench scheduled for August 22, 2008; trial is scheduled from November 2 to December 16, 2009.
Cour supérieure du Québec
Assigned counsel: G. Pinsonnault
Opposing counsel: M. Massicotte, M. Daoust
Nature of Matter: charges under s. 47 of the Competition Act for bid-rigging concerning a call for bids relating to street lights.
Status: Preliminary hearing held on October 25 2007; Pro forma was on June 9, 2008; trial was on December 1-2, 2009. Decision scheduled to be released on January 19, 2010.
Cour supérieure du Québec, Montreal
Assigned counsel: J. Marshall
Opposing counsel: J. Bertrand, C. Monterosso, I. Schurman, J. Peris, N. Tucci, J. Brossard
Nature of Matter: Application for certiorari filed by companies and individuals affected by the search. The application is to obtain an order to quash the decision of justice of the peace to authorize the search.
Status: Certiorari hearing was from April 21 to 25, 2008. On June 6, 2008, the Court decided to uphold the warrants and indicated that there was no charter violation in the garbage seizure.
Questions now under appeal to the Quebec Court of Appeal.
Cour du Québec, Montreal
Assigned counsel: S. Hould
Opposing counsel: L. Huot (represents Mr. Kornelson), Z. Al-Baghdadi (represents Mr. Steczko)
Nature of matter: Charges under s.52.1 of the Competition Act relating to the telemarketing of a business directory by the following companies: Commutel, Marketing USA et Global Management Systems.
Status: Charges laid on February 27 2008. Byron Steczko, Anh-Phong Vo and Cory Kornelson pleaded guilty and obtained a six-month conditional sentence with curfew conditions, as well as a 10-year prohibition order from engaging in telemarketing. An arrest warrant was issued against Hiep Manh Nguyen.
Hyperlink:
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/02649.html
http://competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03163.html
Cour du Québec, Chicoutimi
Assigned counsel: S. Hould, V. Chénard
Opposing counsel: J.-M. Fradette
Nature of matter: Bid-rigging charges under s. 47 of the Competition Act. Charges laid against three construction companies and their presidents based on allegations that the parties entered into agreements to predetermine which would win some contracts.
Status: Charges laid on November 10, 2008. First appearance was on January 5, 2009. Pro forma scheduled for April 12, 2010.
Hyperlink:
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/02748.html
Ontario Court of Justice, Ottawa
Assigned counsel: V. Chénard, D. Pilon
Opposing counsel: P. Mantas, P. McCann, W. Vanveen & A. Patenaude, M. Neville, G. Chayko, E. Dufour & K. Glover, W. Carroll, N. Boxall, D. Daoust & J. Shields, R. Wagner, J. Langevin, S. May, M. McGarvey
Nature of matter: Bid-rigging charges under s. 47 of the Competition Act. Charges laid against 7 companies and 14 individuals based on allegations that the parties entered into agreements to coordinate their bids in an illegal scheme to defraud the government by winning and dividing contracts for information technology services.
Status: Charges laid on February 17, 2009. Ms. Lambert pleaded guilty to one count of bid-rigging on February 23, 2009 at the Superior Court of Ontario. First appearance was on March 17, 2009. On June 9, 2009, Theodore Martin (former owner of TRM Technologies Inc.) pleaded guilty. He was fined $25,000 and a prohibition order was issued against TRM Technologies Inc. The preliminary inquiry is scheduled for December 1st 2010. Next Judicial Pre-Trial scheduled for April 13, 2010.
Hyperlink:
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/02983.html
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03075.html
Cour supérieure du Québec
Assigned counsel: C. Alarie, G. Pinsonnault
Nature of matter: Charges under s. 45 of the Competition Act relating to the price fixing of gasoline at the pump in Victoriaville, Thetford Mines, Magog and Sherbrooke. Charges laid against eleven companies and thirteen individuals in June 2008.
Status: Six of the companies and ten of the individuals have pleaded guilty with fines totalling over $2.7 million. Six of the individuals have been sentenced to a total of 54 months in prison.
Hyperlink:
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03055.html
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03145.html
http://competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03168.html
Federal Court
Assigned counsel: B. Miller, V. Chénard
Opposing counsel: M. Low, R. Hughes
Nature of matter: Charges under s. 45 of the Competition Act for fixing surcharges on air cargo exported on certain routes from Canada.
Status: On June 26, 2009, the following three companies have pleaded guilty. The Court imposed the fines of $4 million for Air France; $5 million for KLM; and $1 million for Martinair. On July 7, 2009, Qantas pleaded guilty and was imposed a fine of $155,000. On October 30, 2009, British Airway Plc pleaded guilty and was imposed a fine of $4.5 million.
Hyperlink:
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03089.html
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03094.html
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03147.html
Assigned counsel: G. Pinsonnault
Opposing counsel: R. Schadley, É. Vanchestein
Nature of matter: Charges under s. 52.1(3) and 52(1) of the Competition Act for engaging in deceptive telemarketing activities involving the sale of business directories.
Status: On June 16, 2009, four companies pleaded guilty before the Court of Québec and were fined $725,000. In addition, prohibition orders were issued by the Superior Court of Quebec against Bianca Rosa Pazzano and Darren Johnston, who operated these companies.
Hyperlink:
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03083.html
*For information mentioned in previous Litigation Reports, please visit the Archives page.