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Litigation Status Report

Last update: August 19, 2010

Prosecutions

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.

R. v. J. D. Marvel et al.
R. v. Michael Reynolds
R. v. Garther Cheung, Sukhraj Chana , Pritpal Chana, Ranjit Sangha , Andrea Kyweriga
R. v. IT Data Direct et al.
R. v. Cory Kornelson, Hiep Manh Nguyen, Byron Steczko and Anh-Phong Vo
R. v. Construction G.T.R.L. et al.
R. v. TPG Technology Consulting Ltd. et al.
Quebec Gasoline Cartel Case
R. v. Infogroup Data Inc., Allegiance Publishing Inc., 2957647 Canada Inc. and 3433587 Canada Inc.
R. v. Gordon Frank et al.

International Litigation

Civil Matters

The Commissioner of Competition v. The Canadian Real Estate Association (CREA)

Competition Tribunal

Assigned Counsel: R. Nassrallah (CBLS) and J. Rook et al. (Legal Agent)

Opposing Counsel: K. Kay

Nature of Matter: Application by Commissioner under section 79 of the Competition Act (Abuse of Dominance) -- The Commissioner argues that CREA and its members have used their control of the Multiple Listing Service (MLS) system and related trademarks to impose exclusionary restrictions in the supply of residential real estate brokerage services and thus limiting the alternative business models in the market.

Status: The Commissioner filed her Notice of Application on February 8, 2010. CREA filed their response on March 26, 2010. The Commissioner filed her reply on April 9, 2010. On July 8, 2010, motions for leave to intervene was denied for Lawrence Dale and was allowed for National FSBO Network. The hearing of the section 79 application is scheduled for April and May 2011.

Hyperlink:
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03196.html
http://www.ct-tc.gc.ca/CasesAffaires/CasesDetails-eng.asp?CaseID=325

The Commissioner of Competition v. Premier Career Management Group Corp. and Minto Roy

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.

Decision on other remedies and costs reserved.

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

The Commissioner of Competition v. Brent Marsall, Dynasty Spas and Games Rooms, Rochelle Marsall, Dynasty Spas Inc. and 1232466 Alberta Ltd.

Competition Tribunal

Assigned Counsel: N. Iatrou

Opposing Counsel: N/A

Status: The Commissioner filed a Notice of Application on July 20, 2010.

Prosecutions

R. v. J. D. Marvel Products, CND Mail Exchange et John Dragan

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 June 23, 2010. Trial set for November 15 to 24, 2010.

R. v. Michael Reynolds

Ontario Court of Justice (Toronto)

Assigned Counsel: G. Reitz (ORO), G. Caracciolo

Opposing Counsel: Unrepresented

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. Four week trial scheduled to commence on April 6, 2010. Bench warrant issued. Trial date vacated.

R. v. Garther Cheung, Sukhraj Chana, Pritpal Chana, Ranjit Sangha , Andrea Kyweriga

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 evidence completed in December 2009. Adjourned to September 20-24, 2010 for closing arguments.

R. v. IT Data Direct et al.

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.

R. v. Cory Kornelson, Hiep Manh Nguyen, Byron Steczko and Anh-Phong Vo

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://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03163.html

R. v. Construction G.T.R.L. et al.

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.

Hyperlink:
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/02748.html

R. v. TPG Technology Consulting Ltd. et al.

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 1^st 2010. Focus hearing was on June 23, 2010 and will continue on September 8, 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

Quebec Gasoline Cartel Case

Cour supérieure du Québec

Assigned counsel: D. Pilon, S. Hould

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. New charges laid against three companies and twenty-five individuals in July 2010.

Status: Five 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. On March 25-26, 2010, charges were withdrawn against Alimentations Couche-Tard inc, and charges were laid against Couche-Tard inc. Appearance and pro forma hearings scheduled for September 13, 2010 in Sherbrooke, September 17, 2010 in Victoriaville and October 1^st in Thetford Mines.

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://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03079.html

http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03262.html

R. v. Infogroup Data Inc., Allegiance Publishing Inc., 2957647 Canada Inc. and 3433587 Canada Inc.

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

R. v. Gordon Frank et al.

Cour du Québec

Assigned counsel: J. Marshall, V. Chénard, R. Morin

Opposing counsel: J. Gordon

Nature of matter: Charges laid under ss. 52 and 52.1 of the Competition Act for engaging in deceptive telemarketing activities related to business directory scams. Charges laid against three individuals and six companies on April 12, 2010.

Status: Next Pro forma is scheduled for September 21, 2010.

Hyperlink:
http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03222.html