Executive Summary: Key Legal and Evidentiary Issues

• Dispute centers on alleged breaches of software development and publishing agreements, and a membership interest purchase agreement.

• Claims and counterclaims involve misuse of intellectual property, including source codes and confidential information.

• Allegations of wrongful termination of business relationships and conspiracy to deprive parties of revenue and IP.

• Procedural conflict over the timing and scope of document disclosure requests.

• Application for further document disclosure dismissed due to lateness and potential prejudice to trial preparation.

• Costs ordered in the cause, with no damages awarded at this stage.

Facts and outcome of the case

Background and parties

This case involves Truly Social Games, LLC and Truly Social Games Vancouver Inc. as plaintiffs, and East Side Games Group Ltd., Eastside Games Inc., Jason Bailey, Joshua Nilson, Andrew Bernard, Muhammed Bin Khalid, Beamble Inc., and Hashbang Inc. as defendants. Additional parties named as defendants by way of counterclaim include Patrick Tougas, Cooper Dubois, Craig Williams, Joe Bonar, and John Doe. The dispute arises from a series of business agreements related to the development and publishing of online games, including Archer, Fantasy Idle, Master, and Trailer Park Boys.

Filing and procedural history

The notice of civil claim was filed on February 28, 2023. The response and counterclaim were filed by the East Side Defendants on March 17, 2023, with other defendants responding shortly after. An amended notice of civil claim was filed on January 8, 2024, after related claims in Oregon were dismissed for forum non conveniens. The trial was set for 25 days, commencing October 6, 2025.

Key facts and legal issues

The plaintiffs allege that after a successful partnership, they were induced into entering the development and membership interest purchase agreements based on misrepresentations about the support that would be provided for the games’ development. They claim these supports were not provided as agreed, and that East Side wrongfully terminated the agreements and conspired with others to deprive them of revenue, intellectual property, and confidential information. The East Side Defendants counterclaim that the Truly Social Parties improperly used East Side’s intellectual property, including source code and game mechanics, to develop or clone new games and profited from them. There is also a claim of defamation against one of the defendants by counterclaim.

Document disclosure dispute

The procedural decision at issue concerns an application by the East Side Defendants for further document disclosure from the Truly Social Parties. The court noted that both sides had engaged in extensive document production, with each criticizing the other’s approach. The East Side Defendants’ demand for additional documents was made over a year before the application, but the application itself was brought only a month before trial. The court found the request to be broad and late, and noted that the complexity and volume of documents should have been anticipated much earlier in the litigation.

Outcome of the application

The court dismissed the application for further document disclosure, finding it was brought too late and would prejudice the Truly Social Parties’ ability to prepare for trial. The dismissal was on a without prejudice basis, meaning the application could be revisited if the trial is adjourned or does not proceed as scheduled. No damages were awarded as this was a procedural ruling, and costs were ordered in the cause, to be determined at the conclusion of the trial depending on the final outcome.