The official publication dealing with Canadian corporate and commercial law
May 22 1996
Volume 3 -- Number 6
The POLYSECURTM Service enables you to fulfill your duties in the event of financing secured by movable property.
Legal counsel's inherent duties
When you are called upon to act as legal counsel on behalf of a creditor with a view to obtaining financing of a commercial nature, you are subject to what is known in banking circles as a due diligence standard of care. Consequently, you are required to take all reasonable steps in order to obtain, and to verify the accuracy of, any information which may have a material impact on the granting or on the conditions of the financing.
Not only is this duty grounded in established business practices, but it is also based on section 3.02.04 of the Code of Ethics of Advocates. Hence, you must disclose to your client the nature and scope of the problem submitted to you as well as the risks inherent in the solutions recommended. Any failure to comply with the due diligence standard of care will theretore result in an act of professional negligence whereby you will risk incurring liability. The PolysecurTM Service is the best way for you to meet your obligation and to safeguard against any eventual claim.
The POLYSECURMC Service
The POLYSECURTM Service is subdivided into
7 distinct "OPTITM" segments, which may be
used separately in order to comply with the requirements of each
particular tinancing. These sections enable legal counsel to ensure that:
THE INTERNET and trade-mark searches:
ANOTHER INNOVATION BY MARQUE D'OR!
The globalization of markets now requires search houses ottering trade-mark services to demonstrate their innovative spirit in order to provide a service of superior quality which takes into account all eventualities.
In this respect, the use of the Internet as an intormation source leads to very convincing results, which tar exceed expectations. Nothing beats a concrete example to illustrate the success of this innovative strategy:
Trade-mark being searched: PINTAL *
Field of activity: Manufacturing of clothes
A tew traditional search stages:
Where others stop, Marque d'Or
In the event where use of the trade-mark being searched is contemplated on an international scale, our search has enabled us to identity a potential problem and perhaps to safeguard its user from potentially serious liability.
*N.B. The trade-mark and the field of activities have been changed in order to preserve the confidentiality of our client and the order of the steps followed has been modified for the purposes of the illustration.
Government turnaround time
Since our last TELEMARKTM, the government turnaround time has remained at a very adequate level of promptness
The tollowing is a list of the turnaround times presently in effect:
|Inspector General (provicial)|
|Name search and reservation||3 days|
|Amendment||2 to 5 days|
|Amalgamation, continuance||2 to 3 weeks|
|Dissolution (Part IA and III QCA)||1 to 2 weeks|
|Filing of declaration with the Inspector General||1 to 2 Weeks|
|Director of Corporations (federal)|
|Sports talk ...Softball|
Marque d'Or's softball team, the Or-la-bi, tied the law firm of Sproule, Castonguay, Pollack (7-7) in this past Tuesday's Montreal Lawyers' Softball League game.
A very close and exciting game. Marque d'Or currently sports a .750 average with a record of 1-0-1.
| Ooh Aah!
Marque d'Or is on the "war" path!
NEW DECISIONS WITH RESPECT TO NAMES
The following are the conclusions reached in tour decisions handed down by the Inspector General during the month of April:
|Applications granted - sufficient
|Name used by|
|the applicant||the respondant|
PASCAL LTÉE &
PLACEMENTS PASCAL LTÉE
|3049752 CANADA INC.
(CLUB MEUBLE PASCAL)
ACTION TRAVEL INC.
|Application rejected - insufficient confusion|
|Name used by|
|the applicant||the respondant|
|LOCATION DE TAPIS
COMMERCIAL 4 SAISONS
The VOYAGES ACTION case
The decision handed down in the VOYAGES ACTION case deals with the apparent link between the applicant "VOYAGES ACTIONS TRAVEL INC." and the respondent "UNIGLOBE VOYAGES ACTION".
The Inspector General ordered the respondent to cease using its name since the words "voyages (travel)" and "action", used in each of the names, in a similar tield of activity, led one to believe that a link existed between the parties even in spite of the adding of the distinctive element Uniglobe, which was a trade-mark of the respondent.
In light of the weakness of the distinctive element "action", the strength of the word UNIGLOBE in the respondent's name and the principle at case law to the effect that a name must be considered as a whole, we express some reservations as to the correctness of this decision.
The PASCAL case
The decision handed down in the PASCAL case will probably set a precedent as it raises a number of very interesting questions of law and of fact:
This decision is justifiable to the extent that it is intended to protect the public interest and the interests of the respondent. However, it does raise one question: despite the tact that a name is not contusing and relates to a ditterent tield of activity, is the use of the tamily name or surname PASCAL torever prohibited in the Province of Quebec? This decision illustrates the reasons why the provincial legislator ought to emulate its tederal counterpart and place a time limit on the prohibition of use of a name no longer in use (2 years).
To obtain more intormation regarding the abovementioned cases, do not
hesitate to ask for our case summaries or to
contact our Name Search Department.