Background

• Incident: In June 2014, pipes within Suncor’s Millennium Naptha Hydrogen Steam Methane Reformer ruptured, causing an explosion and fire.
• Allegations: Suncor alleges the pigtails (pipes) were improperly manufactured by SMST and distributed by Unified Alloys.
• Defense: SMST disputes liability and the claimed damages, also involving Technip in the third-party claims.

Key Points of Appeal

1. Appeal Basis: SMST appealed Applications Judge Farrington’s decision dismissing their application against Suncor.
2. Adversity in Interest: The main issue was whether there was an adversity of interest between Suncor and Technip, allowing questioning of Technip’s employee, Mr. Ed Fong.

Legal Analysis

• Standard of Review: The correctness of the applications judge’s decision based on the existing record.
• Adversity in Interest Test: Based on pleadings and the factual context. Rule 5.17 allows questioning of employees of an adverse party.
• Judicial Findings:
  • Adversity Confirmed: Suncor and Technip had adversity in interest as per the pleadings.
  • Questioning Justified: The process followed was consistent with the consent order; objections by SMST were untimely.
  • Scope of Questioning: No limit beyond what is relevant and material was deemed necessary.

Conclusion

• Decision: The applications judge’s decision was upheld, dismissing SMST’s application.
• Costs: Suncor is entitled to costs of the appeal. Disagreements on the amount may be submitted within 45 days.

Appearances

• For Suncor Energy Inc.: Michael Dixon and Tom Wagner
• For Salzgitter Mannesmann Stainless Tubes USA, Inc.: Heather Treacy, KC, and Katrina Edgerton-McGhan

Costs

• No amount specified.