Background:

• Behold Control Equipment Inc. ("Behold") sued Race Mechanical Systems Inc. ("RACE") and 2700009 Ontario Inc. (doing business as Aquire Facilities Management Services) alleging:
  • Misappropriation and misuse of confidential information.
  • Breaches of contract, duty of good faith, and confidence.
  • Intentional interference with economic relations.
• The defendants denied liability and countersued Behold and its CEO, Trevor Strauss.
• The trial is scheduled to begin on November 14, 2024.

Motion for Confidentiality:

• Behold sought a pre-trial sealing order for 26 documents containing:
  1. Technical specifications of Behold’s HVACR system.
  2. Pricing and profitability information.
• Behold argued that public disclosure would harm their competitive edge.
• The defendants and Starbucks (a non-party involved in document production) did not oppose the motion, but the defendants contested the confidentiality and enforceability of the related agreements.

Court’s Decision:

• Motion Denied: The court, presided by Justice Sanfilippo, declined to grant the sealing order but allowed Behold to renew the request at trial.
• Key Reasons:
  • The evidence presented was insufficient to meet the Sherman test for limiting court openness, which requires proving:
    1. A serious risk to a public interest.
    2. No reasonable alternatives to the order.
    3. Proportional benefits outweighing negative effects on transparency.
  • The documents in question are central to the trial, especially regarding claims of confidentiality and contractual validity.
  • The court emphasized that confidentiality should be determined with a full trial record, rather than pre-trial, to avoid premature rulings that could affect the trial's fairness.
• No definitive successful party.
• No monetary award specified.