Overview

JL Energy Transportation Inc v Alliance Pipeline Limited Partnership, 2025 ABCA 26

The recent decision by a five-member panel of the Alberta Court of Appeal held that the six-year limitation period in the Patent Act applies to claims for patent infringement, regardless of whether such claims are brought in Alberta or the Federal Courts, nor whether they are brought alongside claims of breach of contract. This decision found that the previous holding in Secure Energy,[1] that the two-year provincial statutory limitation period applies, should no longer be followed.

Background

In the underlying action, the plaintiffs, JL Energy, alleged that the defendants, Alliance Pipeline, were in breach of contract and infringed their patent rights by using technology beyond the scope of the limited patent license between the parties.

At first instance, Justice Horner summarily dismissed the action on the basis that it was brought outside the two-year statutory limitation period under the Limitations Act, following the Secure Energy precedent. That precedent provides that given the concurrent jurisdiction of the Federal Courts and Superior Courts with respect to patent law, where a claim is brought in the Superior Court, the provincial limitations act applies.

On motion, the appellants were given permission to reargue this issue.[2]

Decision

In the decision, the Court held that Secure Energy failed to interpret sections 12(1) and (2) of the Limitations Act as a whole and in context. The Court held that the proper interpretation is that the Limitations Act was not intended to apply to rights created under federal legislation which are subject to specific federal limitation periods.

Further, the Court held that an interpretation that would apply different limitation periods depending on which jurisdiction was selected to commence the claim would be both undesirable and contrary to legislative intent.

Accordingly, the appeal was allowed and the action will proceed to trial for continuation of the litigation. Remaining issues, such as whether “rolling” limitation periods with respect to breach of contract or misappropriation of confidential information, were left to be determined at trial.

[1] Canadian Energy Services Inc v Secure Energy Services Inc, 2022 ABCA 200

[2] JL Energy Transportation Inc v Alliance Pipeline Limited Partnership, 2024 ABCA 175