Federal Court has jurisdiction to rule upon whether a proceeding subsists

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Jurisdiction

Federal Court has jurisdiction to rule upon whether a proceeding subsists

Allergan brought action in Federal Court against Apotex for patent infringement. Parties disagreed on whether settlement reached. Allergan’s motion for order enforcing settlement was granted. Federal Court relied on initial exchange between the parties, suggesting that agreement was essentially in place following these communications. Following initial exchange, there was 23-month exchange of emails, including number of draft Minutes of Settlement. Discussions broke off but Federal Court found that email sent by counsel for Allergan on February 24, 2014 accepted terms contained in draft Minutes of Settlement sent by Apotex on January 13, 2014. Federal Court concluded that although parties did not place signatures on formal agreement, they had reached agreement on all essential terms. Apotex’s appeal was allowed. Federal Court has jurisdiction to determine whether patent infringement action has been settled and, if so, to enforce the settlement agreement. When contract law issue before the Court is part and parcel of matter over which Federal Court has statutory jurisdiction, Federal Court has jurisdiction over the contract. Federal Court also has, as part of its plenary power, jurisdiction to rule upon whether or not a proceeding subsists. Existence or non-existence of settlement agreement affects status of proceedings before the court.
Apotex Inc. v. Allergan, Inc. (May. 18, 2016, F.C.A., M. Nadon J.A., Johanne Trudel J.A., and David Stratas J.A., A-204-15) Decision at 252 A.C.W.S. (3d) 433 was reversed. 268 A.C.W.S. (3d) 548.


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