Background:
Steelhead and Seven Generations (now ARC Resources) entered discussions in 2014 to collaborate on an LNG project. Steelhead shared confidential information, including designs for an LNG facility. In 2018, Seven Generations joined a consortium of energy producers exploring LNG development. Steelhead claimed its confidential materials were used without permission after the consortium terminated discussions with them in 2018. ARC allegedly leveraged Steelhead’s confidential information for a new LNG project, leading to the claims in this suit.

Legal Arguments:
Steelhead claimed ARC wrongfully used proprietary LNG designs and business strategies. ARC argued the patent infringement issue had already been dismissed by a Federal Court in 2022 and sought to strike parts of Steelhead’s pleadings, invoking issue estoppel and abuse of process.

Court Findings:
Justice Kent of the British Columbia Supreme Court dismissed ARC’s application to strike the pleadings. The court allowed Steelhead to amend its claim, noting that the broader misuse of confidential information extended beyond the patent dispute and required resolution at trial.

Costs:
No final award or costs were decided. The court ordered that the costs of this application be "in the cause," meaning they would be determined after the trial.