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Federal Court Cour fédérale Date: 20170202 Docket: T-662-16 2 2017 FC 130 Ottayva, Ontario, February 2, 2017 PRESENT: The Honourable Mr. Justice Boswell PROPOSED CLASS PROCEEDING BETWEEN: VOLTAGE PICTURES, LLC, ‘COBBLER NEVADA, LLC, PIG NEVADA, LLC, CLEAR SKIES NEVADA, LLC, GLACIER ENTERTAINMENT S.A.RL. ‘OF LUXEMBOURG, GLACIER FILMS 1, LLC, AND FATHERS & DAUGHTERS NEVADA, LLC Applicants and ROBERT SALNA, PROPOSED REPRESENTATIVE RESPONDENT ON BEHALF OF A CLASS OF RESPONDENTS. Respondents [1] The Applicants have initited a proposed class proceeding claiming, amongst other things, declaratory and injunctive relief against the Proposed Representative Respondent, Robert Page: 2 Salna, on behalf of a class of Respondents, It is alleged thet Mr. Salna (and others lke him) has engaged in illegal file sharing over the Internet, and thereby infiinged the Applicants’ copyrights in several films. [2] The Applicants propose to have this matter cetfied as a so-called “reverse” class action in accordance with Part 5.1 ofthe Federal Court Rules, SOR/98-106. Towards that end, a motion for certification ofthis proceeding as a class proceeding has been scheduled for next June. As of the date ofthis Order though, the Applicants have not served and filed their motion for certification. Inthe meantime, Mr. Satna has brought a motion seeking an Onder requiring the Applicant to pay security for costs in respect oftheir intended motion for certification, without prejudice to him moving for further security inthe event certification is granted, [5] For the reasons that follow, I have determined that the Applicants must give scourity for Me. Salna’s costs in the amount of $75,000.00. Ihave further determined that Mr. Sana is entitled to is costs in respect ofthis motion ina lump sum amount of $750.00 (inclusive of any taxes or disbursements), 1 Issues [4] This motion raises to main issues: 1. Should the Applicants pay security for costs in respect oftheir intended motion for contiicaton? 2. I's, what isan appropriate amount of security for costs? Analysis Page: 3 A. Should the Applicants pay security for costs in respect oftheir intended motion for certification? [5] Inthe context of a cass proceeding, the general rule is that no costs may be awarded against any party to a motion for certification ofa proceeding as a class proceeding. In this regard, Rule 334.39 provides that: No costs 334.39 (1) Subjectto ‘subsection (2), no costs may be awarded against any party to a motion for cetfication of a proceeding 1s a class proceeding toa class proceeding or to an appeal arising from a class proceeding, unless (2) the conduct ofthe party unnecessarily lengthened the duration ofthe proceedings (b) any step in the ‘proceeding by the party was improper, vexatious or ‘unnecessary or was taken through negligence, mistake ‘or excessive caution; or (©) exceptional circumstances make it unjust to deprive the suecessfil party of cost. Sans dépens 334.39 (1) Sous réserve du paragraph (2), les dépens ne sont adjugés contre une parte ‘une requéte en vue de faire autoriser instance comme recours collectf, un recours collet ow a un appel <égcoulant d'un recours collectf, que dans les cas suivants 8) sa conduite a eu pour effet de prolonger inutilement la durée de instance 1) une mesure prise par ele aan cours de Pinstance était, inappropriée, vexatoire ou inutile oua éé effectuse de ‘manigre négligente, par cerreur ou avec trop de eireonspection; 6) des cireonstances exceptionnelles font en sorte qu'il serait injusted’en priver Jn parte qui aeu gain de