Lubrizol Corp. v. Imperial Oil Ltd.
T-577-87
Cullen J.
4/10/94
9 pp.
Trial Judge refusing exemplary damages -- Court of Appeal holding Trial Judge misapprehended issue in refusing exemplary damages -- Matter referred back to Trial Judge to deal with Lubrizol's claim for exemplary damages -- Imperial Oil continuing to manufacture, sell motor oil additives, although enjoined from so doing by interlocutory injunction -- Sale to Shell of ECA 10271, same product manufactured and sold as ECA 10444, deliberate, flagrant, callous disregard of injunction -- If Imperial honestly of view ECA 10271 not violating patent, proper to apply for declaration ECA 10271 different product than ECA 10444 -- At trial, Judge ruling ECA 10444 and ECA 10271 same product -- In choosing to defy injunction rather than lose Shell as customer, Imperial Oil knowingly taking business, legal risk -- Where party continuing conduct after enjoined therefrom, exemplary damages appropriate -- Exemplary damages reflecting indignation of Court -- Not compensatory, but punitive and must be sufficiently substantial to act as deterrent -- Offending conduct continuing for eight months -- Volume of product sold enormous -- Product sold at profit, enabling Imperial Oil to keep Shell as customer illegally, thereby preventing applicant benefit of its invention -- That Imperial Oil large corporation with annual sales of 10 billion dollars factor to be considered in assessing amount to be awarded -- In order to have impact on defendant, exemplary damages set at $15 million -- Costs awarded on solicitor-client basis for trial judgment, appeal judgment and continuance.