Signature Plaza Sport Inc. v. Canada
A-453-90
Marceau J.A.
28/2/94
15 pp.
Appeal from Trial Division decision allowing in part action to recover amount plaintiff (Plaza) forced to pay as consequence of ascertained forfeiture pursuant to Customs Act, ss. 35, 36, 37 and 192(1)(c) and cross-appeal-Plaza, specializing in sports clothing, imported goods from Far East under trade mark "Anne Klein"-Search at Plaza's head office by customs officers disclosed existence of second series of invoices covering same goods which were imported, not from Far East but from New York corporation (Manhattan), no reference made to Far Eastern manufacturers on invoices and selling prices indicated on customs invoices increased by 15% and 5%-Search secondly disclosed existence of other documents certifying payments made by Plaza to Manhattan in connection with said goods-Plaza maintained its business relations with Manhattan set out in two contracts consisting solely of relationship of agent to principal and assignor to assignee-Impossible to properly assess legal nature of contractual relationships between parties relying solely on legal terms used in their written agreements, still less on commercial agreements they sought to establish-Manhattan cannot legally be seen as agent of Plaza for purchase of goods in Far East; intention instead to give plaintiff right to sell "Anne Klein" products in Canada and enable it to use this right by giving it means to obtain supplies as required, since Manhattan held exclusive right to design and manufacture "Anne Klein" products in America-Relations between Plaza and Manhattan had all essential characteristics of seller-buyer relations-Fines imposed on Plaza for other omissions not confirmed since Trial Judge accepted explanations by president of Plaza and concluded he acted in good faith; eliminating fraudulent intent required for imposition of fine-Appeal allowed and cross-appeal dismissed-Customs Act, R.S.C. 1970, c. C-40, ss. 35, 36, 37, 192(1)(c).