WestJet v ELS Marketing Inc
WestJet
Law Firm / Organization
McLennan Ross LLP
Lawyer(s)

Blake P. Hafso

ELS Marketing Inc.
Law Firm / Organization
Miller Thomson LLP
Lawyer(s)

Ian Wilson

Core Logistics International Inc.
Law Firm / Organization
Miller Thomson LLP
Lawyer(s)

Ian Wilson

Core Logistics International Inc. Carrying on Business as ELS Marketing Limited Partnership and ELS Marketing Limited Partnership and ELS Marketing Limited Partnership
Law Firm / Organization
Miller Thomson LLP
Lawyer(s)

Ian Wilson

Nature of Litigation: Ongoing dispute since 2010 involving WestJet’s claim and ELS’ counterclaim.

Key Issues:

  • WestJet sought dismissal of ELS' counterclaim due to inordinate and inexcusable delay (Rule 4.31) and/or non-compliance in producing documents (Rule 3.68(4)).
  • ELS countered with a request for a litigation plan to proceed to trial.

Court's Analysis:

  1. Rule 4.31 (Delay):

    • The Court assessed whether the delay was inordinate, inexcusable, and resulted in significant prejudice.
    • ELS’ counterclaim was reinstated in 2014 after an appeal, but numerous delays followed, including failure to produce documents, adjournments, and changes in counsel.
    • The Court found inordinate delay spanning over a decade, with minimal progress towards trial readiness.
    • ELS’ reasons (procedural disputes, change of counsel, and COVID-19 impact) did not justify the extensive delays.
  2. Prejudice to WestJet:

    • The delay led to potential loss of relevant evidence and fading witness memories, making it difficult for WestJet to defend against ELS’ $52 million damages claim.
    • The presumption of significant prejudice due to inordinate delay was not rebutted by ELS.
  3. Outcome:

    • The Court dismissed ELS' counterclaim under Rule 4.31 due to prolonged, unjustifiable delays.
    • ELS’ application for a litigation plan was denied as moot.

Conclusion: WestJet succeeded in having the counterclaim dismissed. The Court emphasized the detrimental impact of litigation delays on the parties and the legal system. WestJet was awarded costs, with a provision for written submissions on costs if the parties could not agree. No specific amount was provided.

Court of King's Bench of Alberta
1001 00525
Civil litigation
Applicant