An Ontario Superior Court judge has turned down a request by Stanley Bernstein to exclude the public from portions of a trial that stems from a multi-million lawsuit the well-known diet doctor filed against a former business partner.
Justice Michael Quigley stressed that only in "exceptional cases" would the public be barred from a court proceeding in Canada. "This is not that case," said the judge, in court Thursday morning.
Legal arguments over whether to seal the court had delayed the start of testimony in the trial that resulted from a lawsuit that Dr. Bernstein filed in 2006 against Scott Seagrist.
The two doctors, both of whom operate "obesity practices" used to be business partners in clinics in Kitchener and London, Ont. Dr. Bernstein was seeking more than $10-million in damages from Dr. Seagrist, alleging that he violated their business agreement and misused confidential information. Dr. Seagrist filed a counter-claim, denying the allegations and seeking similar compensation from Dr. Bernstein.
The methods of Dr. Bernstein, which involve low calorie diets and vitamin injections, were based on public knowledge, alleged Dr. Seagrist. None of the allegations has been proven in court.
In seeking to exclude the public, lawyers for Dr. Bernstein argued that his diet methods were "trade secrets" which competitors would try to use, if disclosed in open court.
The ruling by Judge Quigley indicated that he was not deciding whether or not the diet techniques were trade secrets, but whether Dr. Bernstein met the very high legal test to exclude the public from a court proceeding.
The judge noted that all 600-pages of a diet manual written by Dr. Bernstein was alleged to be confidential, even though much of the information was in the public domain. "A broad panoply of information is claimed by Dr. Bernstein," observed Judge Quigley. The request for a closed court "was excessive and over-reaching," the judge added.
Despite the court ruling, the information that Dr. Bernstein was seeking to keep from the public, may still remain confidential. Lawyers for both doctors were granted time this week to try to reach an out-of-court settlement.
One of Dr. Bernstein's lawyers asked for more time Thursday in hopes of reaching a deal. "We are not quite there yet," said Gary Daniel.
Jonathan Rosenstein, a lawyer for Dr. Seagrist, told the court that it was not yet clear if the trial will go ahead. "We are close to an impasse on a main issue," said Mr. Rosenstein.
The lawyers were urged by Judge Quigley to continue their settlement discussions.
Special to The Globe and Mail