Executive Summary: Key Legal and Evidentiary Issues

• Rentokil applied for an order compelling Viking Pest Management Inc. to produce client lists, banking documents, credit card statements, and financial statements.

• The court applied the three-part test from Carter v. Municipal Corporation Ltd. to determine whether document production should be ordered.

• Viking argued the documents were commercially sensitive and disclosure could give Rentokil a competitive advantage, but the court found the standard is whether documents "relate to" matters in issue, not strict relevance.

• Evidence established significant commingling between Mr. Pretty, Ms. Pretty, North Lab, and Viking, including shared office space, financial loans, and employees.

• Mr. Pretty remained bound by contractual confidentiality and non-solicitation obligations with SVM (Rentokil's predecessor) until June 2024, one year after he left Rentokil.

• The requested documents were found necessary for fair disposal of the proceedings, with conditions imposed to limit dissemination.

Background and parties involved

Rentokil Canada Corporation is a commercial and residential pest control company operating in Newfoundland and Labrador. It is the successor in interest to SVM Services Canada, Limited. Kenneth Patrick Pretty was formerly the owner and directing mind of Cabot Pest Control Limited, which he sold to SVM on January 6, 2015, signing an employment contract with SVM on January 7, 2015. Mr. Pretty continued working through various corporate transitions, serving as Newfoundland Branch Manager when it appears Terminix may have acquired SVM, and later when Rentokil and Terminix merged on October 12, 2022.

The employment dispute and Viking's incorporation

During his approximately eight months with Rentokil, Mr. Pretty negotiated employment terms including salary, vacation leave, and bonus structure. Critically, he sought permission to continue operating North Lab Pest Control Ltd., his own pest control company, while employed by Rentokil—an arrangement he had maintained with Terminix. Rentokil refused this request. In response, Mr. Pretty sent an email stating he was not accepting, considered himself constructively dismissed, and was leaving. His employment with Rentokil ended when he resigned on June 8, 2023. On March 16, 2023, his wife Kathleen Pretty incorporated Viking Pest Management Inc.

Allegations of wrongdoing and corporate relationships

Rentokil filed its Statement of Claim on October 19, 2023, alleging that Mr. Pretty breached his confidentiality and non-solicitation obligations under the Asset Purchase Agreement and employment contract. The company claimed that, contrary to the accepted arrangement, Mr. Pretty redirected business opportunities from Rentokil to Viking while acting as an employee and fiduciary of Rentokil, operated in geographic areas of the province not agreed to with Rentokil, and used Rentokil property to benefit Viking's business. Viking hired eight former Rentokil employees, including the Prettys' son Evan Pretty. The company began performing subcontracting work for Maheu & Maheu on accounts that were formerly done by Rentokil, including Loblaws, Ultramar, and Central Dairies.

Evidence of interconnected operations

The court identified numerous connections between the parties: Mr. and Ms. Pretty are married and share the family home in Portugal Cove-St. Philip's, NL; North Lab loaned Ms. Pretty $200,000 which she then loaned to Viking when she incorporated the company to cover startup expenses; Viking leases office space at 26 Duffy Place, St. John's, NL, and North Lab sub-leases some of that space from Viking for which North Lab pays $500 monthly; both companies bank at Toronto Dominion Bank on Kelsey Drive, St. John's, NL; both retain Coombs and Associates as their accountant; and Viking subcontracts pest control work from both North Lab and Maheu & Maheu.

The legal test for document production

Justice Handrigan applied the three-part test established in Carter v. Municipal Corporation Ltd.: documents must relate to matters in question in the proceeding; the court must be of the opinion that production is necessary for disposing fairly of the proceeding or for saving costs and is not injurious to public interest; and documents must not be privileged from production. The court emphasized that the test is not strict "relevance" but rather whether documents may "throw light on the case" by enabling a party to advance their case or damage the adversary's position.

Ruling and outcome

The court granted Rentokil's application, ordering Viking to produce copies of client lists, contractual arrangements and billings, banking documents, credit card statements, and financial statements for the period from May 2023 to June 30, 2024. Recognizing the commercially sensitive nature of the documents, Justice Handrigan imposed strict confidentiality conditions: documents must be maintained in confidence by Rentokil's solicitors without additional copies made; Rentokil's solicitors may consult, discuss and refer to the documents with its officers and employees to obtain instructions, but Rentokil may not copy or retain possession of them; Rentokil and its solicitors may not disclose, disseminate or discuss the documents with other persons without further order of the Court; and any court filings referencing the documents shall be sealed upon filing and inaccessible to any person other than the trial judge, court officials and counsel for the parties. Costs were ordered in the cause. No specific monetary amount was awarded at this interlocutory stage, as the main claim remains outstanding.