Case Overview: Bennett Jones LLP and Voorheis & Co. LLP applied for a civil contempt declaration against 0678786 B.C. Ltd., 8028702 Canada Inc., and their lawyer, Jeffrey Poole, for failing to comply with previous court orders regarding solicitor-client privileged information.
- Background:
- Bennett Jones LLP inadvertently sent privileged information belonging to Voorheis & Co. LLP to Jeffrey Poole, counsel for 067 and 802. The court previously found the information was not handled properly.
- The court had issued orders to cease further disclosure and to rectify previous disclosures, which were violated, leading to contempt proceedings.
- Phase 1 Decision: The court established liability for civil contempt but deferred the decision on consequences.
- Phase 2 (Current Decision): Despite the contempt being purged (compliance achieved), the court was asked to impose penalties and indemnity costs for the contempt.
Key Findings:
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Declaration of Contempt: The court declared 067, 802, and Jeffrey Poole in contempt, noting intentional non-compliance and failure to promptly rectify breaches.
- Consequences:
- A monetary penalty of $50,000 was imposed on all three for Bennett Jones, and another penalty covering two-thirds of legal costs (around $316,667) for Voorheis & Co.
- Costs: Additional costs awarded against the contemnors for legal proceedings at an enhanced rate (twice Schedule C costs).
- Reasoning: The court emphasized the importance of solicitor-client privilege, the need to deter similar conduct, and the serious implications of defying court orders, especially by legal professionals.
This decision stresses respect for court orders and solicitor-client privilege, even after compliance has been achieved.