CF No. T-2058-12 - TekSavvy Ats. Voltage - Notice of Motion Re Appeal - March 27, 2015 (1)
Transcript of CF No. T-2058-12 - TekSavvy Ats. Voltage - Notice of Motion Re Appeal - March 27, 2015 (1)
Court File No. T-2058-12
FEDERAL COURT
BETWEEN:
VOLTAGE PICTURES LLC Plaintiff
- and -
JOHN DOE AND JANE DOE Defendants
- and -
TEKSAVVY SOLUTIONS INC. Responding Party
- and -
SAMUEL SON-GLUSHKO CANADIAN INTERNET POLICY AND PUBLIC INTEREST CLINIC
Intervener
NOTICE OF MOTION
TAKE NOTICE THAT THE RESPONDING PARTY, TEKSAVVY
SOLUTIONS INC. ("TekSavvy") will make a motion appealing the order of Madam
Prothonotary Aronovitch dated March 17, 2015 (the "Order") to the Court, on a date
to be set by the Court, at Ottawa.
THE ESTIMATED DURATION of the hearing of the appeal motion is four
hours.
THE MOTION IS FOR:
(a) an Order varying paragraph 1 of the Order so as to award TekSavvy its
reasonable legal costs, administrative costs and disbursements as
claimed in its Bill of Reasonable Legal Costs, Administrative Costs and
Disbursements (save for the costs associated with the adjourned hearing
before Justice Mandamin, which request was withdrawn);
(b) in the alternative to (a), an Order varying paragraph 1 of the Order so as
to award TekSavvy such additional portion of its reasonable legal costs,
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administrative costs and disbursements as this Honourable Court deems
just and appropriate;
(c) an Order setting aside paragraph 3 of the Order and awarding
TekSavvy its costs of the hearing before Prothonotary Aronovitch;
(d) the costs of this appeal motion; and
(e) such further and other relief as counsel may advise and this Honourable
Court deem just.
THE GROUNDS FOR THE MOTION ARE:
(a) the moving party, TekSavvy, is a relatively small telecommunications
service provider based in Chatham, Ontario that provides Internet
service provider ("ISP") services, among other services;
(b) on November 14, 2012, the Plaintiff, Voltage Pictures LLP
("Voltage"), commenced an action alleging that unidentified "Doe"
Defendants had engaged in illegal file-sharing over the Internet and had
thereby infringed copyright held by Voltage in various cinematographic
works;
(c) Voltage claims to have identified Internet Protocol (IP) addresses
associated with those alleged copyright violations and determined that
some were IP addresses that had been assigned to the Responding
Party, TekSavvy and were thus associated with ISP customers of
TekSavvy;
(d) on November 1, 2012, Voltage provided TekSavvy with draft motion
materials containing a list identifying over 4,500 IP addresses
(subsequently reduced to slightly over 2,100 IP addresses), for which
Voltage sought subscriber information from TekSavvy, an innocent
third party;
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(e) TekSavvy took the position from the outset that it would not disclose
customer account information without a Court order so requiring and
without appropriate privacy safeguards. TekSavvy also advised
Voltage, inter alia, that it would be a substantial undertaking for
TekSavvy to identify the IP addresses, and that it would require the
dedication of significant resources away from the normal operations of
TekSavvy's business;
(f) Voltage's motion seeking disclosure of personal subscriber information
was adjourned twice and was ultimately heard before Prothonotary
Aalto on June 25, 2013;
(g) in Reasons for Order and Order released on February 20, 2014, 1
Prothonotary Aalto ordered, inter alia, that "[a]11 reasonable legal costs,
administrative costs and disbursements incurred by TekSavvy in
abiding by this Order shall be paid by the Plaintiff to TekSavvy".
Prothonotary Aalto also ordered that "[a]ny dispute regarding those
costs can be resolved by the Case Management Judge";
(h) on March 14, 2014, Madam Prothonotary Aronovitch was appointed
case management judge; 2
(i) at the direction of Prothonotary Aronovitch, the issue of the reasonable
legal costs, administrative costs and disbursements incurred by
TekSavvy was addressed through a motion brought pursuant to Rule
406, with such modifications as the circumstances required;
(j) the motion with respect to these costs was heard before Madam
Prothonotary Aronovitch on December 8, 2014;
Amended on February 16, 2015; the amendments are not relevant to the within motion. 2 On March 23, 2015, Prothonotary Aalto was appointed case management judge in place of Prothonotary Aronovitch.
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(k) TekSavvy filed a detailed Bill of Reasonable Legal Costs,
Administrative Costs and Disbursements, supported by affidavit
evidence, that itemized costs totalling $346,480.68, including costs
related to, inter alia:
(i) information technology administrative costs incurred by
TekSavvy in correlating the IP addresses, including the
implementation of new systems designed specifically to respond
to Voltage's request and the Order of Prothonotary Aalto;
(ii) operational administrative costs incurred by TekSavvy in
communicating with its customers to respond to concerns
related specifically to the Order of Prothonotary Aalto and
Voltage's request, including increased staffing requirements
directly attributable to same;
(iii) legal costs and disbursements incurred by TekSavvy in respect
of Voltage's motion, both before and after the hearing of the
motion before Prothonotary Aalto; and
(iv) disbursements reasonably incurred by TekSavvy to "harden" its
infrastructure in response to a Directed Denial of Service attack
occurring as a direct result of Voltage's motion;
(1) Voltage took the position that TekSavvy was not entitled to any costs
whatsoever or, alternatively, was entitled to no more than $884.00;
(m) on March 17, 2015, Madam Prothonotary Aronovitch released her
Order and Reasons for Order, awarding TekSavvy a total of $21,557.50
as its "legal costs, administrative costs, and disbursements of abiding
with" Prothonotary Aalto's Order, and in doing so:
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(i) disallowed all of TekSavvy's claim for reasonable legal costs
save $4,500 associated with certain communications pertaining
to a technical issue related to the list of IP addresses;
(ii) disallowed all of TekSavvy's claim for operational
administrative costs;
(iii) disallowed $10,035.00 of TekSavvy's information technology
administrative costs;
(iv) disallowed all of TekSavvy's claim for disbursements; and
(v) declined to award costs of the Rule 406 motion in favour of
TekSavvy;
(n) the decision of the Learned Prothonotary to disallow the large majority
of the legal, administrative and disbursement costs incurred
TekSavvy's was based upon a wrong principle, an error of law and/or
misapprehensions of the fact that cannot reasonably be supported by
the evidence, and in particular, the Learned Prothonotary erred in:
(i) improperly interpreting the scope of Prothonotary Aalto's
decision and the relevant Norwich order jurisprudence,
including the purpose and nature of costs to which an innocent
third-party respondent is entitled in the context of a Norwich
order;
(ii) improperly relying on irrelevant jurisprudence to justify
excluding TekSavvy's costs;
(iii) concluding that Prothonotary Aalto did not intend to entitle
TekSavvy to its costs of the motion before him or, alternatively,
concluding that Prothonotary Aalto did not intend to have the
case management judge address the costs of the motion before
him;
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(iv) refusing to accept submissions regarding what had been
requested and/or spoken to at the hearing of the motion before
Prothonotary Aalto;
(v) refusing to allow certain of TekSavvy's costs, including all of
TekSavvy's operational administrative costs, on the basis that
such were merely the "costs of doing business" and, as such,
could not be recovered;
(vi) refusing to allow the vast majority of TekSavvy's legal costs,
including all costs of its counsel Christian Tacit, thereby
effectively negating Prothonotary Aalto's specific and express
reference to TekSavvy's entitlement to its "legal costs";
determining that she could not calculate TekSavvy's legal costs
for the motion itself within the Federal Courts Rules tariff;
(viii) failing to provide adequate reasons for disallowing some or all
of the costs claimed in TekSavvy's Bill of Reasonable Legal
Costs and/or providing reasons that fail to support the decision
to disallow such costs; and
(ix) refusing to award TekSavvy its costs of the motion before her,
including, but not limited to, unreasonably criticizing TekSavvy
for its cost request and failing to consider the factors
enumerated under Rule 400 of the Federal Courts Rules
regarding costs;
(o) Rules 3, 4, 35, 51, 358-371, 400, 401 and 407 of the Federal Court
Rules;
(p) such further and other grounds as are set out in the evidence and written
representations filed in support of this motion; and
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(q)
such further and other grounds as counsel may advise and this
Honourable Court may permit.
THE FOLLOWING DOCUMENTARY EVIDENCE will be used at the
hearing of the motion:
(a) the Bill of Reasonable Legal Costs, Administrative Costs and
Disbursements of TekSavvy, including supporting documentation;
(b) the Affidavit of Marc Gaudrault, sworn June 27, 2014;
(c) the Affidavit of Pascal Tellier, sworn June 27, 2014;
(d) the Affidavit of Pierre Aube, sworn July 3, 2014;
(e) the Transcript of Cross-examination of Marc Gaudrault, October 8,
2014, and the exhibit thereto;
(f) the Transcript of Cross-examination of Pascal Tellier, October 8, 2014;
(g) the Transcript of Cross-examination of Pierre Aube, October 8, 2014;
(h) the Affidavit of Barry Logan, sworn July 30, 2014, and a selected
exhibit therefrom;
(i) the Affidavit of Steven Rogers, sworn July 31, 2014 (without exhibits);
(j) the Affidavit of John Philpott, sworn July 31, 2014 (without exhibits);
(k) the Transcript of Cross-examination of Barry Logan, October 9, 2014,
and the exhibits thereto;
(1) the Transcript of Cross-examination of Steven Rogers, October 9,
2014, and the exhibit thereto;
) the Transcript of Cross-examination of John Philpott, October 9, 2014;
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(n) the Statement of Claim in Court File No. T-2058-12, filed November
14, 2012;
(o) the Order and Reasons for Order of Justice Mandamin, dated January
18 and January 31, 2013;
(p) the Amended Order and Reasons for Order of Prothonotary Aalto,
dated February 16, 2015;
(q) the Order and Reasons for Order of Madam Prothonotary Aronovitch,
dated March 17, 2015;
(r) the transcript of the hearing held before Prothonotary Aronovitch on
December 8, 2014; and
(s) such further and other evidence as counsel may advise and this
Honourable Court may permit.
March 27, 2015 44'
STIKEMAN F t'io LP Banisters & Solicitors Suite 1600, 50 O'Connor Street Ottawa, Ontario MP 6L2
Nicholas McHaffie Alex Sarabura Tel: (613) 234-4555 Fax: (613) 230-8877
Solicitors for the Responding Party, TekSavvy Solutions Inc.
TO: THE REGISTRAR
AND TO: BRAUTI THORNING ZIBARRAS LLP 151 Yonge Street, Suite 1800 Toronto, ON M5C 2W7
AND TO:
P. James Zibarras John Philpott Tel: (416) 362-4567 Fax: (416) 362-8410
Lawyers for the Plaintiff, Voltage Pictures LLC
SAMUELSON-GLUSHKO CANADIAN INTERNET POLICY & PUBLIC INTEREST CLINIC (CIPPIC) University of Ottawa, Faculty of Law, Common Law Section 57 Louis Pasteur Street Ottawa, ON K1N 6N5
David Fewer Tel: 613-562-5800 ext. 2558 Fax: 613-562-5417
Lawyers for the Intervener, Samuelson-Glushko Canadian Internet Policy and Public Interest Clinic (CIPPIC)