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Notice of Civil Claim, As Amended

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Notice of Civil Claim, As Amended Amended by order of the Honourable Madam Justice Horsman made February 5, 2021 Previously amended pursuant to Rule 6-1(1)(a) on March 13, 2019 Previously amended by order of Master Bouck made October 24, 2018 Original filed September 24, 2018 No. S-1810486 Vancouver Registry In the Supreme Court of British Columbia Between BRETT SIPOS PLAINTIFF and NETLINK COMPUTER INC. dba NCIX, ABLE SOLUTIONS INC., AND WING QUON PROPERTIES AND INVESTMENTS LTD. DEFENDANTS and PEARL WEST INVESTMENTS LTD., ABLE SOLUTIONS INC., WING QUON PROPERTIES AND INVESTMENTS LTD., JACKIE YUEN LUNG CHONG, HERMAN CHONG, STEVE WU and JOHN DOE THIRD PARTIES Brought under the Class Proceedings Act, R.S.B.C. 1996, c. 50 SECOND FURTHER AMENDED NOTICE OF CIVIL CLAIM This action has been started by the plaintiff for the relief set out in Part 2 below. If you intend to respond to this action, you or your lawyer must 012394/001/00480039 1 (a) file a response to civil claim in Form 2 in the above-named registry of this court within the time for response to civil claim described below, and (b) serve a copy of the filed response to civil claim on the plaintiff. If you intend to make a counterclaim, you or your lawyer must (a) file a response to civil claim in Form 2 and a counterclaim in Form 3 in the above-named registry of this court within the time for response to civil claim described below, and (b) serve a copy of the filed response to civil claim and counterclaim on the plaintiff and on any new parties named in the counterclaim. JUDGMENT MAY BE PRONOUCED AGAINST YOU IF YOU FAIL to file the response to civil claim within the time for response to civil claim described below. Time for response to civil claim A response to civil claim must be filed and served on the plaintiff, (a) if you reside anywhere in Canada, within 21 days after the date on which a copy of the filed notice of civil claim was served on you, (b) if you reside in the United States of America, within 35 days after the date on which a copy of the filed notice of civil claim was served on you, (c) if you reside elsewhere, within 49 days after the date on which a copy of the filed notice of civil claim was served on you, or (d) if the time for response to civil claim has been set by order of the court, within that time. THE PLAINTIFF’S CLAIM Part 1: STATEMENT OF FACTS Overview 1. Netlink Computer Inc. dba “NCIX” was a BC-based company that sold computers and peripheral equipment to customers across Canada and the United States. In late 2017, NCIX was assigned into bankruptcy. The Bowra Group Inc. (“Bowra”) was appointed trustee of the estate. During the bankruptcy process, Bowra engaged Able Solutions Inc. (“Able”) (an auction house) and NCIX`s landlord (“Wing Quon”, including the third parties Jackie Chong and Herman Chong), as well as Pearl West Investments Ltd. (“Pearl West”, an investment fund), received and disposed of key parts of the estate’s assets. During that process, Bowra, Able and NCIX's landlord ("Wing Quon") the defendants and third parties allowed employees’ and customers’ private 012394/001/00480039 2 information, (including addresses, social insurance numbers, and other sensitive information), to be exposed and sold to or otherwise obtained by third parties, including criminals, in breach of employees’ privacy. Through this suit, employees and customers seek to hold the defendants accountable for their conduct. The Parties 2. The defendant NCIX is incorporated pursuant to the laws of British Columbia with an address for service for this proceeding care of The Bowra Group Inc. and a registered address at Suite 550 – North Tower, 5811 Cooney Road, Richmond, BC. 3. The defendant Able Solutions Inc. dba “Able Auctions” is incorporated pursuant to the laws of British Columbia, with an address for service at #5080 – 8171 Akeroyd Road, Richmond, BC. Able carries on business as an auctioneer, including for the disposition of property from bankrupts’ estates. 4. The defendant Wing Quon Properties and Investments Ltd. is incorporated pursuant to the laws of British Columbia, with an address for service at #100-13500 Verdun Place, Richmond, BC. Wing Quon (the “Landlord”) was at material times the owner of the premises at which NCIX carried on business in Richmond, BC. Wing Quon leased its premises to MSDB Holdings Ltd. (“MSDB”). MSDB was a non-arm’s length company controlled by the controlling shareholder of NCIX or his nominees. MSDB sub-leased the premises to NCIX, with the knowledge or consent of Wing Quon. MSDB’s finances were inseparable from NCIX’s, and when NCIX stopped paying any rent to MSDB, if it had ever done so, MSDB stopped paying Wing Quon. Wing Quon’s treatment of the NCIX premises made no material distinction between MSDB and NCIX as tenant. Wing Quon is affiliated with the third parties Jackie Chong and Herman Chong. 5. The Bowra Group Inc. is incorporated pursuant to the laws of Canada and extra- provincially registered in British Columbia, with an address for service 220 – 7565 132nd Street, Surrey, BC. Bowra is a licensed insolvency trustee under the Bankruptcy and Insolvency Act, RSC 1985, c B-3. Leave will be sought to bring a claim against Bowra. 5a. The third-party Pearl West Investments Ltd. is a private investment business based I Vancouver. Pearl West purchased and resold property from NCIX’s estate. 012394/001/00480039 3 5b. The third-party Steve Wu was the controlling mind of NCIX at material times. He has not taken part in this litigation and his whereabouts were unknown. 5c. The third-party John Doe is a person known only as “Jeff”, whose identity remains unknown to the Plaintiff. 6. The Plaintiff, Brett Sipos, is a resident of Surrey, British Columbia. At material times, he was an employee of NCIX. In order to receive his pay cheque and make remittances, he provided private information to NCIX, including his name, address, social insurance number, and other core biographical data, which information alone or in combination is not public information. The Plaintiff was also a customer of NCIX during and after his employment, and provided his name, addresses, phone numbers, email addresses, credit card numbers (including expiry dates and CVV codes) and associated information to make purchases. 7. The Plaintiff brings this claim on his own behalf and on behalf of all former employees and customers of NCIX wherever resident (“Class Members”, to be defined in the Plaintiff’s application for class certification). NCIX 8. NCIX was incorporated pursuant to the laws of British Columbia. NCIX was an online computer hardware and software retailer based in Richmond, British Columbia. It had retail outlets in Vancouver, Burnaby, Coquitlam, Richmond and Langley, BC, as well as in Markham, Mississauga, Scarborough and Ottawa, Ontario. NCIX sold to customers in Canada and the United States. 9. NCIX obtained and stored employees’ personal information, including social insurance numbers, home addresses, full legal names and other core biographical data, which information alone or in combination is not public information (“Employees’ Private Information”). This e Employees’ P private I information was obtained from employees for the limited purpose of paying their salaries, and making necessary government remittances and filings. ¶ It was an express or implied term of every employee’s employment agreement with NCIX that their Private Information would be safeguarded, that it would be retained only so long as necessary for human 012394/001/00480039 4 resources purposes, and that only so much information as was actually required would be collected and retained. 9a. Customers purchased products from NCIX online, over the phone or in person. In order to make a purchase, customers provided NCIX with private information including but not limited to names, addresses, phone numbers, email addresses, credit card numbers (including expiry dates and CVV codes), passwords and other financial data such as credit applications, which information alone or in combination is not public information. 9b. This private information was obtained from customers for the limited purpose of processing their orders or advancing credit for purchases. It was an express or implied term of every customer’s agreement with NCIX that their private information would be safeguarded, that it would be retained only so long as necessary to process their orders or credit applications, and that only so much information as was actually required to process their orders would be collected and retained. 9c. Together, the private information of customers and employees of NCIX was “Private Information”. 10. NCIX stored the Employees’ Private Information in physical hardcopy, usually paper, and electronically, including on computer servers (the “NCIX Servers”), and other media. Some or all of the NCIX Servers and other media containing the Private Information were not encrypted. In the alternative, the NCIX Servers and other media containing the Private Information were not protected to industry standard and any security protections were insufficient. 11. The Plaintiff and Class Members had direct, transactional relationships with NCIX. The information collected by NCIX was sensitive and collected in the course of its business. It was reasonably foreseeable that harm such as identity theft could result if such information were disclosed or not securely stored, and it was foreseeable to NCIX as an experienced participant in the information technology sector. 012394/001/00480039 5 The NCIX Bankruptcy 12. On November 21, 2017 NCIX filed a Notice of Intention to Make a Proposal under subsection 50.4(1) of the Bankruptcy and Insolvency Act, RSC 1985, c B-3 with The Bowra Group Inc.
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