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Technology Stocks : Thermo Tech Technologies (TTRIF) -- Ignore unavailable to you. Want to Upgrade?


To: Scott Levine who wrote (4263)6/4/1998 6:05:00 PM
From: Robert Pool  Respond to of 6467
 
Court transcript Part 4 pages 38 to 46

19 THE COURT: Mr. Lunny?
20 MR. LUNNY:
21 MR. BOWES: I take it --
22 MR. LUNNY: I have no objection to Mr. Cumming
23 staying, of course.
25 DANIEL ROSS LEWIS, a witness
26 on behalf of the Defendants,
27 having been duly sworn, testifies
28 as follows:
29
30 THE REGISTRAR: Please state your full name and spell
31 your last name for the record, sir.
32 A Daniel Ross Lewis, L-e-w-i-s.
33 THE REGISTRAR: Thank you, sir. You may be seated, if

34 you wish.
35
36 CROSS-EXAMINATION BY MR. LUNNY:
37
38 Q Mr. Lewis, did you bring your file with you
39 today?
40 A I did.
41 Q Okay. Can you produce it for me, please.
42 You reviewed it before coming here today?
43 A Pardon?
44 Q I take it you reviewed it before coming here
45 today?
46 A Oh, I've been looking at it, yeah.
47 Q Okay. Maybe I'll have a look at it as we go
48 through.

39

1 I take it your big books are somewhere, too.
2 Are they in the office?
3 A Yeah. I just brought --. I only brought the
4 latest one. The other ones are mainly on
5 electronic format now, but --. I brought that
6 one, as well, which is the latest version of the
7 manual.
8 Q That's helpful.
9 When were you contacted --. Well, let me
10 put it this way: I understand from the evidence
11 given by Mr. Cumming that you were contacted
12 sometime after the judgment in the case had come
13 down to do the work that resulted in this book;
14 is that correct?
15 A Basically, yes.
16 Q Okay. Can you tell me when that was?
17 A I'll just look at my --. Let me look back at the
18 file here and see when we started.
19 The first note I have here is from the 4th
20 of February.
21 Q Okay.
22 A So it would have been sometime prior to that.
23 Q And I --. And you correct me if my -- if I'm
24 wrong at all, but I also understand that Stothert
25 Engineering had essentially little to do for
26 Thermo Tech Technologies Inc. in the time period
27 before being retained for this project, back to
28 1994 or so; is that correct?
29 A Yeah. We've kept in touch with them, but we
30 haven't provided any -- any significant services
31 through until the beginning of this year.
32 Q All right. So --. And I take it you understand
33 that considerable engineering work has been done
34 for the Thermo Tech companies by other
35 engineering firms in the interim?
36 A I'm aware of that, yes.
37 Q Okay. What is it, Mr. Lewis, that you read and
38 reviewed and perused and relied upon prior to
39 giving us your affidavit of March 11, 1998?
40 A I read through the licence agreement with the --
41 is it plaintiff?
42 Q Yes. That will do.
43 A Okay. And I read through the judgment that was
44 given, and I also -- I'm trying to think what
45 else I read. Licence agreement and the judgment,
46 and those were the two main documents.
47 Q Can you think of anything else?
48 A Well, I talked to Thermo Tech and asked them, you

40

1 know, what they had and looked at our own files.
2 We had some files that dated back to when we
3 had --. We had produced the first technical
4 manual and done the revision of the second, and
5 this was the third, so we've done all of the
6 revisions of that, so I read through that.
7 Q Okay. Did you attend at the offices of Thermo
8 Tech to review the engineering drawings and
9 specifications in their possession?
10 A No.
11 Q All right.
12 A Not prior to that. We did --. We do have some
13 drawings from them, but that's not -- not
14 relevant here.
15 Q No. I'm just trying to establish, sir, that you
16 yourself did not review the engineering
17 specifications provided for Thermo Tech by, for
18 example, Sandwell Inc.?
19 A Sandwell? No, I'm not aware of that.
20 Q Did you review the engineering drawings and
21 specifications provided by Stanley Engineering?
22 A I have seen some drawings and specifications from
23 Stanley, when they were initially done.
24 Q But not since then?
25 A Not --. I don't remember what year it was, but
26 it was -- I think that was when they were
27 building the plant in Corinth. They asked me to
28 look at some of the work that was done at that
29 time.
30 Q Okay. Did you review the Dick Engineering
31 engineering --
32 A Yes.
33 Q -- drawings?
34 A Yeah. We're currently doing another project for
35 Thermo Tech, acting as owner's engineer, --
36 Q Okay.
37 A -- for the Richmond plant.
38 Q No. I'm talking about prior to --. I'm not --.
39 I know that you're doing that -- you've just
40 recently been appointed as the engineer to help
41 build the plant in Richmond; is that right?
42 A That's right. But we --
43 Q Okay.
44 A We had the Dick Engineering drawings before this
45 submission.
46 Q Okay. So you reviewed them prior to giving your
47 opinion here?
48 A Yes.

41

1 Q Can you produce those for me, please.
2 A Produce which?
3 Q The Dick Engineering drawings.
4 A Well, I couldn't carry them all over.
5 Q All right.
6 A I can produce them if you like, but --
7 Q But you weren't asked to bring the drawings that
8 you'd reviewed in order to --
9 A We were asked to bring the file, and so I've
10 brought the file.
11 Q All right. Do those -- those --. Let me just
12 ask you: The engineering specifications and
13 drawings that we've referred to, in terms of
14 Stanley Engineering and Dick Engineering, relate
15 to thermophilic plants, do they not?
16 A Yeah. But they're for the construction of
17 thermophilic plants.
18 Q I understand. The design or the construction of
19 thermophilic plants, correct?
20 A Um-hum.
21 Q Is that right?
22 A Yes.
23 Q Okay. Now, when you -- is there a letter that
24 sets out what you were asked to do with respect
25 to producing this new booklet?
26 A No.
27 Q It was all done orally?
28 A It was done orally. They asked -- they had
29 basically asked if we could update the manual.
30 Well, first of all, we talked about what the
31 judge's order was, and I read through the -- read
32 through the order, and it specifically -- this
33 manual was specifically addressed to transfer
34 technology to the licensee. And that was
35 basically what we interpreted. The judge took
36 exception to the specifications that dealt with
37 the construction of plants and the sourcing of
38 equipment, and so anything that had to do with
39 that, we -- this was what was remaining after
40 that was accepted.
41 Q Now, when you say "took exception" to the
42 construction, --
43 A Well, in the judge's order, there was some --
44 there was an exception that what-- what wasn't
45 included to be transferred.
46 Q Okay. Maybe I can just get you to point that out
47 for me, sir.
48 This is a reference at --. Maybe I can just

42

1 give you this one.
2 A Okay.
3 Q A reference to environmental assessment reports,
4 cost assessment reports, and documentation
5 regarding the specifications and sourcing the
6 equipment?
7 A That's right. And so basically, that stuff fell
8 into the category of specifications of sourcing
9 of equipment used in the construction of
10 thermophilic plants.
11 Q Okay.
12 A So I would consider, you know, construction
13 drawings to fall into that category.
14 Q What about design drawings? They wouldn't fall
15 into that --
16 A Yes.
17 Q -- category.
18 A Those are --. That's what that is for.
19 Q It doesn't say design drawings here, does it?
20 A It says drawings for the construction.
21 Specifications for the construction.
22 Q It doesn't say drawings for the construction,
23 does it?
24 A Sorry?
25 Q It doesn't say drawings for the construction.
26 A Well, let me read that again, if you wouldn't
27 mind.
28 It says, "All documentation regarding the
29 specifications and sourcing of equipment used in
30 the construction of thermophilic plants." I
31 would consider that to include design drawings.
32 Q Okay. So if design drawings and construction
33 drawings are excluded, what's left?
34 A The technology transfer manual, which is -- which
35 was provided.
36 Q Technology transfer manual, is that a new name
37 for it? We've --
38 A No.
39 Q -- called it --
40 A That's basically what the title is, but it
41 basically defines the specifications and the
42 details of the equipment required to build the
43 plant. Build a Thermo Tech plant.
44 Q Okay. Prior to giving your affidavit, sir, did
45 you read the affidavits that had previously been
46 filed in the proceedings?
47 A What are you talk --. Which ones are you
48 referring to?

43

1 Q Well, there's Mr. Lis's affidavit.
2 A No, I haven't read Mr. Lis's affidavit.
3 Q Mr. Branconnier's affidavits?
4 A No, I haven't read his.
5 Q Mr. Hole's affidavits?
6 A No, I haven't read his.
7 Q Okay. Have you read the statement of defence in
8 this case?
9 A No.
10 Q When did you really stop actively working for
11 Thermo Tech?
12 A The last work we did for them prior to this year
13 was back in -- the last time when Stanley was
14 preparing the drawings for Corinth.
15 Q 1993?
16 A Something about that time. But as I say, we've
17 kept in touch with them, but -- we made a
18 proposal to them sort of about '96 or so, but
19 that was the last time.
20 Q So you --. I mean, it's fair to say that you
21 haven't actually provided consulting and
22 engineering services to Thermo Tech over the past
23 nine years, correct?
24 A Not very much, no.
25 Q All right. It's fair to say that you haven't
26 been --
27 A Well, nine years -- it's not -- it's not nine
28 years. It's '98 now.
29 Q All right.
30 A That would be five years.
31 Q Okay. So you haven't actually provided
32 consulting and engineering services to Thermo
33 Tech over the past five years?
34 A That's right.
35 Q All right. And, therefore, you haven't been
36 there throughout and had personal knowledge of
37 what was developed in Thermo Tech over the past
38 five years, correct?
39 A We have been involved in sort of a peripheral
40 manner. We were involved --. One of our fellows
41 was involved in providing some assistance to
42 them. I think when they were -- when they opened
43 up the plant in either Hamilton or Brampton, I
44 can't remember, we attended there.
45 Q You haven't?
46 A No, I haven't. No.
47 Q All right. You haven't been working for Thermo
48 Tech for the last five years, doing all this

44

1 stuff, if I -- if you know?
2 A No, we haven't been providing the engineering for
3 them, that's for sure.
4 Q All right. Now, I have a copy -- and this is
5 Exhibit A to the affidavit -- I think it's
6 Exhibit A to the affidavit of Mr. Harlan. This
7 is the original Trooper Technologies -- the
8 original booklet given to Trooper Technologies.
9 A What's the date of that?
10 Q This is 24th of November 1992.
11 A Okay. That's Revision 1.
12 Q We'd better make sure it says that on it.
13 A I think.
14 Q It says current revision number 8.
15 A Hm? No, there's something wrong there.
16 Q Well, somebody -- somebody wrote that in. I'll
17 show you that.
18 MR. LUNNY: And, my lord, if you might -- you might
19 try and have that in front of you.
20 A That's Revision 1.
21 Q Oh, I'm sorry. So it's somewhat inaccurately --
22 A It's in the -- yeah.
23 Q It may be accurate. Maybe they meant to indicate
24 this is copy number 8 or something.
25 A Yes. I think so.
26 Q Okay.
27 THE COURT: Which document is that, I'm sorry?
28 A That's --
29 MR. LUNNY: It's --
30 A It's been circled incorrectly.
31 MR. LUNNY: It's the document that starts "open up
32 with a proprietary right and confidentiality
33 agreement."
34 Is it --. Is it there, my lord?
35 THE COURT: Yes.
36 MR. LUNNY: Okay.
37 Q So this is the one that was in -- transferred to
38 the plaintiff, as far as we know, in 1992, --
39 A That's --
40 Q -- correct?
41 A As far as I know, yes.
42 Q And you prepared this?
43 A Yes. We prepared the -- we didn't prepare the
44 first document; we --
45 Q No, the agreement.
46 A We prepared the -- all the technical sections
47 here, starting from the -- basically, the title
48 page there.

45

1 Q Okay. And which parts of this do you say are
2 standard certified engineering specifications?
3 A Well, okay. When you get into the -- into the
4 details in --. If you go through the manual,
5 section 1 is an introduction, section 2 is
6 background information on the process, section 3
7 is a process description that describes how the
8 process works, and there are specifications in
9 there dealing with the various aspects of the
10 process. But if you get into section -- section
11 4 Application, section 5 -- section 5 is the
12 Equipment Selection and Design, that defines the
13 equipment and the details of equipment for the
14 process.
15 Q Okay. Which parts do you say are standard
16 certified engineering specifications?
17 A Well, basically, the whole thing is a
18 specification for the Thermo Tech process.
19 Q Okay. And where's the standard certified?
20 A Well, I mean, that --
21 Q In which spots?
22 A That is a --. That's a term that could apply for
23 just about anything. You know, it's -- it's not
24 a standard engineering term.
25 Q Well, a certified engineering specification.
26 A Yeah, a certified engineering specification,
27 yes, --
28 Q I see.
29 A -- but not a standard certified engineering
30 specification.
31 Q Okay. There aren't any certified engineering
32 specifications in there, are there?
33 A Yes. This --. This section here is the
34 specification for the Thermo Tech process.
35 Q What section are you referring to?
36 A This is --. Well, section 5 in particular,
37 defines the equipment, section 6 defines the
38 control section, section 7 defines the operation.
39 Those are the specifications for the process.
40 Q Okay. And where's the certification?
41 A Hm?
42 Q Where's the certification?
43 A Where is the certification? There was a letter
44 that was attached to the beginning of this
45 document when it was transferred, and I had a --
46 they had actually asked me a copy of that, asked
47 me for a copy of that, and we had affixed a
48 certification letter to the beginning of that

46

1 document when it was first issued, and that is --
2 I had to go through the archives to find it here,
3 and basically, it says here, "I have assisted in
4 the preparation --" this was a -- this was a
5 letter to Thermo Tech, dated 1989: "I have
6 assisted in the preparation of the technical
7 manual Rev. 0, dated the 22nd of 11/89, for
8 Thermo Tech's thermophilic digestion process, and
9 I have reviewed the licence agreement dated the
10 24th of May 1989 between Thermo Tech Waste
11 Systems and U.S. Thermo Corp. With regard to
12 section 2.03 of the agreement, my opinion is that
13 the contents of the technical manual provides the
14 specifications, know how and process flow
15 information reasonably necessary to utilize,
16 supply and market the process and construct
17 plants capable of processing the following
18 products," and it lists four products. "Yours
19 truly."
20 So that's a certification.
21 Q Yes, but that certification -- that's not a
22 certification relating to this manual that you've
23 got in front of you; that's a certification
24 relating to a different licence agreement, isn't
25 it?
26 A Well, it's the same document. It's the same --.
27 You know, it's Revision 1 of the same document.
28 We did the revision.
29 Q There's no certification in the manual, correct?
30 A Sorry?
31 Q There's no certification in the manual?
32 A I don't know. I haven't seen this one before.
33 Q Okay. Well, maybe you can look at it.
34 A I mean, on an engineering drawing, the
35 certification goes on the -- goes on the copy, or
36 it can go on the original, depending what it is.
37 Q Okay. Would you pull out that letter for us.
38 I'd like to mark that.
39 A It's in my file here.
40 Q Yes. I don't --
41 A And this is a --. This is a --. This is a copy
42 of -- off of -- out of our electronic file. I
43 don't have a copy of the original, but it's in
44 here. Do you want me to take it out of here?
45 Q Yes, please.
46 A Okay.
47 Q If you would.
48 THE COURT: Mr. Lunny, I'm going to have that marked



To: Scott Levine who wrote (4263)6/4/1998 6:09:00 PM
From: Robert Pool  Respond to of 6467
 
Court Transcript Part 5 pages 47 to 55

47

1 as the first exhibit in this proceeding, and then
2 we're taking the break.
3 MR. LUNNY: Thank you.
4 MR. BOWES: Just for the record, my lord, that letter
5 was attached to the front of the manual that was
6 handed to you on the morning you granted your
7 judgment. The actual copy of the letter, as
8 opposed to the file copy.
9 MR. LUNNY: Well, the only problem I have with that is
10 that when you produced that on the morning of the
11 judgment, that wasn't the manual that was given
12 to my clients.
13 Yes. Might this be marked, my lord.
14 THE REGISTRAR: Exhibit 1.
15
16 EXHIBIT 1: Certification Letter from File of
17 Mr. Lewis
18
19 (WITNESS STOOD DOWN)
20
21 THE REGISTRAR: Order in court. Chambers stands
22 adjourned until 2:00.
23
24 (PROCEEDINGS ADJOURNED @ 12:32 p.m.)
25 (PROCEEDINGS RESUMED @ 2:02 p.m.)
26
27 THE REGISTRAR: Order in chambers.
28
29 DANIEL ROSS LEWIS, Resumed:
30
31 CROSS-EXAMINATION CONTINUED BY MR. LUNNY:
32
33 Q Mr. Lewis, the exhibit that we've just marked as
34 Exhibit A, and you'll maybe just be able to
35 recall this, dealt with a controversy regarding
36 another licence agreement other than the Eastern
37 European Licence Agreement; is that correct?
38 A Yeah. This was very early in their -- in their
39 programme. They didn't have enough sort of
40 documentation to transfer technology to -- to the
41 licensee, or the licensee was concerned about how
42 much they had. So we basically prepared --
43 Stothert prepared that document in order to
44 comply with the requirements of the technology
45 transfer.
46 Q And requirements of that particular licence
47 agreement?
48 A Yes. That's right.

48

1 Q All right. The document that we've referred to
2 as the design criteria manual that was provided
3 to the plaintiffs, you've described as Revision
4 1. What's the difference between the original
5 and Revision 1? What are the main differences?
6 A I don't recall exactly what the differences are.
7 There was --. There would have been some minor
8 changes in terms of the process, because the
9 original document was prepared in 1989, and in
10 1992, I think at that point they had constructed
11 some additional facilities, so it had some
12 additional operating experience, which would have
13 been reflected in the manual.
14 Q Okay.
15 A As I recall, there were some changes -- I think
16 some of the metallurgy changed. In the original
17 manual, there was some reference to allowing
18 carbon steel in some of the equipment, and that
19 was deleted because of some problems with
20 corrosion that hadn't been anticipated in the
21 original design.
22 Q Okay. And what are the changes from Revision 1
23 that you've incorporated in the present volume
24 that you delivered to this court?
25 A There is a number of minor revisions, mainly --
26 mainly operating related. They deal with the
27 control philosophy of running the plant. It's
28 been simplified from what the original concept
29 was. Some of the requirements for monitoring
30 process conditions have been reduced, in that it
31 was determined, after operating experience, that
32 they weren't an essential element of the control.
33 I think there have been some -- some minor
34 changes in equipment design. Some of the heat
35 exchange coils system in the digesters have been
36 revised. There was a revision to the --
37 basically, to the process flow sheet in mass
38 balance.
39 Q Okay.
40 A Again, reflecting, you know, operating experience
41 with the plant.
42 Q Sure. But all of those revisions -- and I think
43 you accept that on the scale of things, they're
44 minor revisions -- were made by you after you'd
45 been contacted by Thermo Tech following the
46 original judgment in this case, correct?
47 A That's right.
48 Q All right.

49

1 A Yeah. I think the -- I mean, obviously they were
2 in Thermo Tech's domain, and so we basically
3 asked them what changes have been made in their
4 process, they gave those to us, and we updated
5 the manual accordingly.
6 Q Are you familiar with the patents that Thermo
7 Tech owned?
8 A Yes. The one --
9 Q The original patents?
10 A Yeah. The original one by Coulthard and --
11 Q Yes.
12 A -- et al.
13 Q Yes. And do you accept that the process as
14 disclosed in this manual, design criteria manual
15 of 1992, isn't a tracking of the Coulthard
16 patent?
17 Correct?
18 A How do you mean, it isn't a tracking?
19 Q Well, it goes beyond the Coulthard patent. It
20 includes other process features not --
21 A Basically, know-how in order to use the process,
22 yes.
23 Q Yes. But that know-how includes a process, for
24 example, that isn't contemplated by the Coulthard
25 patent. For example, it uses heat coils,
26 external heat sources, whereas a feature of the
27 Coulthard patent which makes it patentable is
28 that there's no external heat employed. Isn't
29 that correct?
30 A Well, the coils are both for heating and cooling.
31 Q Of course.
32 A So there is --
33 Q Heating and cooling.
34 A There is the -- there is the ability to do both,
35 and in some cases --. So I understand. I mean,
36 I haven't run one of the plants. In some cases,
37 you need to cool it; in some cases you need to
38 heat it to get it going.
39 Q Am I correct, though, in saying that the
40 Coulthard patent specifically excludes any
41 external heat source?
42 A Yeah. If you leave it long enough, the
43 thermophilic process will generate enough heat
44 just from the agitation in order to reach the
45 temperatures at which the thermophilic bacteria
46 will start to generate.
47 Q And the absence of any external heat source is a
48 feature of the Coulthard patent, correct?

50

1 A That's right.
2 Q Okay. Now, we touched on earlier the exclusion,
3 and I'm just going to read this, where the court
4 excluded specifications and sourcing of the
5 equipment used in the construction of
6 thermophilic plants. And I take it your view is
7 that there's no difference between the equipment
8 used in the construction of thermophilic plants
9 and the equipment used in thermophilic plants; is
10 that correct?
11 A Sorry, ask me that again?
12 Q Well, you seem to indicate that you excluded vast
13 amounts of material from production because of
14 this clause saying that the -- there was no need
15 to deliver specifications and sourcing --
16 A I think --. You've got to go back further in the
17 text, I think.
18 Q Okay. Well, let me put it this way: You
19 didn't -- you didn't regard it as necessary that
20 there be delivery of specifications and sourcing
21 of the equipment used in the construction of
22 thermophilic plants, correct?
23 A That's right.
24 Q Okay. So -- and I take it from your general
25 answer, that you don't see any differentiation
26 between the equipment used in the construction of
27 thermophilic plants and the equipment used in
28 thermophilic plants; you regard them as meaning
29 the same. Is that right?
30 A I guess you could interpret that one way or the
31 other. I mean, if you said equipment used in the
32 construction, you could include cranes, you could
33 include drills, you could include cement mixers.
34 Q Right.
35 A So there is a difference.
36 Q Okay. Now, let me ask you: Had there been no
37 such inclusion -- exclusion at all, had there
38 been no such exclusion of this nature, would you
39 have felt it necessary to deliver up a great deal
40 more in the way of certified engineering
41 specifications and drawings?
42 A Likely, yes.
43 Q All right. Because as it stands, with all due
44 respect to the work that you've done in putting
45 this new booklet together, it doesn't give the
46 plaintiffs a great deal more than they already
47 had, correct?
48 A That's basically what the licence agreement, as I

51

1 interpret it, said they should get.
2 Q Okay. Well, let's leave your interpretation
3 aside, but you'll agree that it doesn't give them
4 a lot more than they already had; is that
5 correct?
6 A It updates the information.
7 Q Are you agreeing with me? It doesn't give
8 them --
9 A There are changes.
10 Q Yes. But they're minor, aren't they?
11 A Some of them aren't so minor in the control
12 system.
13 Q All right. You're not agreeing with me, then?
14 You're just --
15 A Not completely, no.
16 Q All right. Now, I wonder if I can ask you to
17 look at some things that -- I know you haven't
18 read some of these affidavits, or all of them at
19 least before.
20 A It's Ross, by the way. I go by my second name.
21 Q I'm sorry.
22 And I want you to look at the statement of
23 defence which is at tab 1. Have you read this?
24 MR. LUNNY: This is --
25 A No.
26 MR. LUNNY: -- the green booklet, my lord. I think
27 I've handed one up.
28 Q You haven't read the statement of defence?
29 A No.
30 MR. BOWES: My lord, I don't have a copy of this
31 document to which my friend is referring. The
32 green booklet?
33 MR. LUNNY: Oh, I'm sorry. It was just put together
34 from our last chambers.
35 Q Now, if you go to page 3, paragraph 9, Mr. Lewis,
36 you'll see there that it's stated that the
37 defendants have advised that the plant technology
38 is currently undergoing redesign and
39 re-engineering to address environmental concerns.
40 That's the first part of paragraph 9.
41 A Um-hum.
42 Q And then in paragraph 10, it says, "The
43 defendants, and each of them, have therefore
44 advised the plaintiff that the re-engineering
45 drawings are currently being prepared with all
46 possible speed, however, they are not yet
47 available for delivery to the plaintiff."
48 I just want to ask you, I think we've got it

52
1 from your evidence already, that the reference to
2 the redesign and re-engineering and the
3 re-engineering drawings there, it's not a
4 reference to anything you were doing at that
5 time, is it?
6 A No.
7 Q Okay. Do you know what that is a reference to?
8 A No.
9 Q Paragraph 19 on page 4, I wonder if you can look
10 there. It states, Mr. Lewis, "In further answer
11 to the whole of the statement of claim herein,
12 the defendants, and each of them, state that the
13 certified engineering specifications and drawings
14 will be provided to the plaintiffs as soon as the
15 engineering drawings and specifications have been
16 completed and as soon as the plaintiffs can
17 satisfy the defendants as to the economic
18 viability of the proposed plants in Poland..."
19 And I won't carry on, but it does go on.
20 I take it that the materials that you
21 provided in this update are not the engineering
22 drawings and specifications that were then being
23 undertaken; is that correct?
24 A Well, this was dated December 30th, 1997. So it
25 couldn't have been.
26 Q It couldn't have been, that's right. However,
27 can you agree with me -- maybe you don't know the
28 answer, but can you agree with me that all of the
29 redesign and re-engineering that you're aware of
30 having taken place was in fact derived from -- in
31 other words, the design criteria manual was the
32 starting point for all of it?
33 A For all of the engineering that's been done on
34 the plants? I'm not certain that's --. It's the
35 origin, yes.
36 Q All right.
37 A I'm not sure that's in total.
38 Q So the starting point, for example, of the
39 re-engineering, redesign and upgrading of the
40 process which was currently ongoing with Dick
41 Engineering Ltd. was the design criteria manual?
42 A No. But I think you have to understand that this
43 design criteria manual is the -- it basically
44 reflects changes; it doesn't -- it isn't the
45 source of all changes. The manual is updated
46 when and where, you know, the improvements have
47 been designed, or the changes have been made, and
48 then it's reflected in the manual. So it isn't

53

1 the --. It was the origin when the -- when the
2 original plants were being designed, but again,
3 the origin of the information here came from
4 Thermo Tech. We didn't --. We didn't develop
5 the information ourselves. So obviously, there's
6 a parallel line, and this is reflecting
7 information as it's developed by Thermo Tech.
8 And there can be a delay; for example, the last
9 revision was 1992. So there's a delay of about
10 six years, then, for updating.
11 Q Have you included in the new design criteria
12 manual all of the improvements that took place,
13 or are you saying you only included the ones that
14 Thermo Tech gave to you, if I can put it that
15 way?
16 A That's right. We didn't --. All we had was
17 information that was provided by Thermo Tech.
18 Q Okay. And who gave you that information?
19 A I got some information from Dan Cumming. We
20 worked with Kathy Koellner, who -- I guess she's
21 in Edmonton. She basically went through the
22 manual with us and gave us the revisions to the
23 other sections of the manual.
24 Q And is she with Lockerbie & Hole, or who is she
25 with?
26 A I believe she's with Thermo Tech, but she's based
27 in Edmonton.
28 Q Okay. I wonder if you could go to tab 3 of that
29 booklet, and this is the affidavit of Mr. J.D.
30 Hole. Do you know who he is?
31 A Yes. I've met him.
32 Q Okay. And in tab 3, paragraph 8, he indicates
33 that --
34 MR. BOWES: What's the date of that?
35 MR. LUNNY:
36 Q The date of that affidavit, sworn the 13th of
37 January 1998.
38 In paragraph 8, he indicates that Lockerbie
39 Thermo had received requests from time to time
40 for certified engineering specifications and
41 engineering reports. "However, on each occasion,
42 the plaintiffs were advised, and accurately
43 advised, that the redesign and re-engineering had
44 not yet been completed and the certified
45 engineering specifications, drawings and reports
46 were not yet available."
47 Now, again, what Mr. Hole is referring to
48 has got nothing to do with the work that you've

54

1 done in order to comply with the order of this
2 court; is that correct?
3 A Not except -- you know, unless there's stuff that
4 they gave me that reflects work that was ongoing.
5 Q Okay. And paragraph 17, if I can ask you to go
6 to page 3, Mr. Hole indicates that he's been
7 advised by Mr. Branconnier that "as soon as the
8 redesign and re-engineered drawings,
9 specifications and reports can be completed, and
10 as soon as the plaintiff can demonstrate its
11 project in Poland to be economically feasible,
12 and as soon as the plaintiffs satisfy the
13 defendants they will proceed in strict compliance
14 with all applicable laws, rules and regulations
15 of the State of Poland, all of the required
16 engineering specifications, drawings and reports
17 will be immediately delivered to the plaintiffs
18 by Thermo Tech Waste Systems Inc. or Thermo Tech
19 Technologies Inc."
20 And I take it given that this was sworn
21 January 13th, 1998, that's not in any way related
22 to your work, which was not even commissioned
23 until, I think, around February 1998; is that
24 correct?
25 A Yeah. I mean, we didn't do any engineering. We
26 were basically just updating the manual. So if
27 there was engineering going on, it could well be
28 reflected in what the changes were in the manual.
29 I don't know.
30 Q Now, in paragraph 22, Mr. Hole indicates that,
31 "Mr. Lis was well aware that any technical
32 information based on the existing plants would be
33 of little or no use, since it was known to all
34 concerned that the proposed Polish plants would
35 be of the new state of the art design."
36 Do you have any knowledge of that?
37 A The first I've heard of it.
38 Q Okay. Now, correct me if I'm wrong, but the
39 drawings in the design criteria manual are
40 stamped "Not For Construction Purposes"; is that
41 correct?
42 A That's right.
43 Q So for construction purposes, one would require
44 other drawings?
45 A It would require additional engineering.
46 Basically, the manual provides the process
47 design. In addition to that, you'd require
48 mechanical, engineering and equipment selection,




To: Scott Levine who wrote (4263)6/4/1998 6:12:00 PM
From: Robert Pool  Read Replies (1) | Respond to of 6467
 
Court Transcript Part 6 Pages 56 to 65

56

1 Q Okay.
2 A -- that was us or not.
3 Q I think it --. I think I can take you further --
4 A I think it was probably Stanley at that point,
5 but I'm not certain.
6 Q Yes. See, that's April 9th, and that says "a
7 local engineering firm." And if you go to tab
8 2, --
9 A It could be.
10 Q -- which is very shortly thereafter, it deals
11 with, in the middle of the first paragraph, "The
12 company is in the process of contracting with an
13 engineering company based in Toronto for a
14 turnkey plant."
15 A Right.
16 Q Okay. So that would be Stanley, wouldn't it?
17 A No. Stanley is not in Toronto. I think there
18 was another firm they were working with in
19 Toronto, as well, and I honestly don't remember
20 the name of it. It was a --. I think they were
21 primarily a contractor, but they did engineering
22 work, as well.
23 Q Okay.
24 A And I honestly don't remember the name of the
25 firm.
26 Q Well, fine.
27 Tab 3, if you just go to the next page. And
28 I'm going to take you to the fourth paragraph.
29 The last sentence in the fourth paragraph, it
30 states, "Local waste trucking companies have been
31 contracted to deliver certain biodegradable waste
32 to the plant and the company has contracted with
33 a local consulting firm, Stothert Engineering
34 Ltd., who will provide the engineering for a
35 turnkey plant."
36 Do you see that?
37 A Yeah.
38 Q Did you provide the engineering for a turnkey
39 plant?
40 A We didn't in the end. I think that we were -- we
41 were going to do it, and as I recall, there were
42 some delays in getting started. We had done a
43 number of site studies. I think that's right.
44 It could have been us. There was a number of
45 site studies, and then when the -- when they
46 actually wanted to do the engineering, we were
47 too busy. We didn't --. We couldn't -- couldn't
48 fit it into our schedule.

57

1 Q Somebody did it, though?
2 A Yeah. I think Stanley --. As far as I know,
3 Stanley ended up doing the first -- first one.
4 Q Okay. Now, this -- these references I've made
5 are all to around about April 1990.
6 A Yes.
7 Q Now, -- but you'd done the design criteria manual
8 before that?
9 A We'd done the design criteria manual, and we had
10 prepared a preliminary engineering design for the
11 plant, and that would have given them an outline
12 drawing showing the equipment arrangement, you
13 know, basic process diagrams, et cetera.
14 Q Now, is that the design criteria manual, or is
15 that something else?
16 A That's something else.
17 Q Okay. Paragraph --. Tab 4, just to bring you in
18 again, this is July 199O, where it deals with
19 Sandwell Inc. In the middle paragraph, "Sandwell
20 Inc. will provide the engineering for a turnkey
21 plant."
22 A Um-hum.
23 Q Is that the Toronto firm; do you think?
24 A That could be. I know they have -- they had an
25 office in Toronto at that time. I don't know if
26 they still do. I honestly don't remember. There
27 was -- they went through a number of different
28 people there at that time.
29 Q Let's take you to tab 6. This is rushing right
30 ahead to November 9th, 1992.
31 A Okay.
32 Q And it indicates in the fourth paragraph,
33 starting "Stothert Engineering Ltd.", "Stothert
34 Engineering is the company's independent
35 engineering consultants. Stothert has developed
36 complete engineering specifications for the
37 construction of plants utilizing the company's
38 technology and guarantees the plants will operate
39 as claimed."
40 That's something different from the design
41 criteria manual, isn't it?
42 A Where are you reading here? I'm --
43 Q I'm at the fourth paragraph on --
44 A Okay.
45 Q -- the first page of tab 6, starting "Stothert
46 Engineering." I think --
47 A Where am I looking here? I don't see it.
48 Q Maybe I've lost you.

58

1 A Where are you at?
2 Q Tab 6.
3 A Oh, tab 6. That's why I can't see it.
4 Q Did you develop complete engineering
5 specifications?
6 A That would have been --. That would have been
7 this book here. We had some specifications for
8 equipment that we'd developed, sort of on a
9 preliminary basis, that was the only thing.
10 Q And did you guarantee that the plants will
11 operate as claimed?
12 A Did we guarantee? Not as far as I know.
13 Q Just quickly to tab 7, last page, and this is a
14 reference to Stanley Engineering, at page 4, at
15 the foot of the page: "Stanley Engineering is in
16 the process of completing all necessary
17 engineering drawings --"
18 A Okay. That's the --
19 Q Have we got there?
20 A Yeah. Yeah.
21 Q "-- for a 125-ton-per-day plant."
22 A Yeah.
23 Q Now, if those were all necessary engineering
24 drawings for a 125-ton-per-day plant, one could
25 not build a 125-ton-per-day plant without the
26 necessary engineering drawings; is that correct?
27 A Stanley actually completed construction drawings.
28 Q All right. Including the necessary engineering
29 drawings?
30 A Well, drawings for construction, yes.
31 Q All right. So they would be reasonably necessary
32 to construct plants, right?
33 A Yes. You can't construct plants without
34 construction drawings.
35 Q Right. And that's the same reference as at tab
36 10 under Plant Construction, where it indicates
37 that Stanley Engineering had completed all
38 necessary plans and equipment specifications to
39 construct 125-ton-per-day plants in Corinth, New
40 York; Edmonton, Alberta; Brampton, Ontario;
41 Burlington, Ontario and Hamilton, Ontario?
42 A Um-hum.
43 Q In fact, the plants that were up and running
44 eventually were Corinth, Brampton and Hamilton;
45 is that correct?
46 A As far as --. Yeah, that -- as far as I know.
47 MR. LUNNY: My lord, might this booklet be marked as
48 the next exhibit.

59

1 THE REGISTRAR: Exhibit number 2.
2
3 EXHIBIT 2: Booklet of Documents of Plaintiffs
4
5 MR. LUNNY:
6 Q As of 1993, all these plants -- and I've just
7 referred you to tab 10 there, --
8 A Yes.
9 Q -- and it's also in tab 8 -- they're all being
10 referred to as Thermo Master TM plants. Are you
11 aware of that?
12 A No. I just knew them as a Thermo Tech plant. As
13 far as I knew, the Thermo Master TM was the
14 control system relating to the plant.
15 Q Was that the process or --
16 A Yeah. Well, it's the -- it was a Thermo Master
17 TM control that regulated the process, regulated
18 the digestion process.
19 Q Now, I think you've indicated already -- and I
20 may be treading -- this is probably my last
21 question -- the improvements that you
22 incorporated to cover off improvements were those
23 that were -- you were advised of by Thermo Tech;
24 is that correct?
25 A That's correct.
26 Q Okay.
27 MR. LUNNY: Those are my questions, my lord.
28 THE COURT: Thank you.
29 MR. BOWES: Here's your book.
30
31 RE-EXAMINATION BY MR. BOWES:
32
33 Q Mr. Lewis, if I can just pick up where my friend
34 left off a moment ago, the improvements that you
35 included in the revision to the design criteria
36 manual were those that you were advised of by
37 Thermo Tech?
38 A That's correct.
39 Q Now, you were aware of the Dick Engineering
40 drawings at the time you prepared this second
41 volume?
42 A That's right. We had sets of the drawings and
43 specifications from Dick in our office.
44 Q Now, were there any improvements in those
45 drawings that you left out?
46 A As far as I knew, it was a different technology,
47 so they were -- we were not really looking at
48 them. We did -- I mean, obviously we had to pay

60

1 attention to the digestion part, because that's
2 really the core of it.
3 Q Different technology, can you explain that?
4 A Well, my understanding was that Thermo Tech had
5 applied for a patent for the -- this new plant,
6 and it was Mark II, or whatever they called it,
7 for the new plant design.
8 Q You looked at the drawings?
9 A Yes.
10 Q What about the Stanley drawings? Had you had an
11 opportunity at some point to look at those before
12 you prepared this new revision?
13 A Many, many years ago.
14 Q Okay.
15 A I looked at those probably -- you know, when
16 Stanley was doing the design, probably in
17 their -- sort of halfway through their design
18 process, I looked at them. Gave them some
19 comments.
20 Q I guess what I'm getting at, sir, is when you
21 were advised of improvements by Thermo Tech, did
22 you just take what they said, or did you ask them
23 questions?
24 A Well, I asked questions, obviously. Because, you
25 know, they're not just going to give us the
26 information. I had to ask some questions
27 regarding the technology.
28 Q And you were aware of the Corinth plant and the
29 Brampton plant and the Hamilton plant?
30 A Yes.
31 Q And as a professional, you asked questions to
32 satisfy yourself that you had all of the
33 improvements?
34 A That's right. You know, I went back to Thermo
35 Tech on some sections and asked specific
36 questions. You know, some was to Dan Cumming,
37 particularly on the control, because after -- you
38 know, after our discussions with Kathy Koellner,
39 she hadn't, you know, mentioned any revisions in
40 the control philosophy, and I knew that, you
41 know, from the operations, there would be some
42 changes. So I went back to Dan Cumming
43 specifically and asked him for, you know, changes
44 in the control -- control of the plant, and so he
45 gave me some -- some marked-up sections from
46 the --
47 Q Yes.
48 A Revision 1.

61

1 Q Now, sir, my friend asked you early on in his
2 cross-examination of your affidavit about the
3 Dick Engineering drawings, and my note was that
4 you said these drawings were for construction of
5 thermophilic plants, and then my friend and you
6 got into some discussion concerning the
7 difference between design drawings and
8 construction drawings. Can you help us further
9 in that -- in that area?
10 A Well, the construction -- basically, design
11 drawings can relate to the design of equipment,
12 to sections of a plant. Construction drawings
13 are the drawings that a contractor would require
14 in order to build a plant. These include
15 foundation drawings, that's concrete, reinforcing
16 steel, anchor bolt locations. It relates to
17 building structures, building finishing details.
18 It relates to, you know, arrangement of equipment
19 in the plant, how it's organized, details of
20 piping between the equipment, electrical systems,
21 configurations of the controls. There's a lot
22 more information that goes into it.
23 Q For example, would you need to know where the
24 plant was going to be built before you could have
25 construction drawings?
26 A Oh, absolutely. Because the -- you know, the --
27 all of the -- all of the design is predicated
28 upon building codes, electrical codes, plumbing
29 codes, that sort of thing. Environmental
30 regulations.
31 Q So that could vary from province to province?
32 A Absolutely.
33 Q Or from country to country?
34 A No question.
35 Q Now, my friend also took you to the first
36 revision of the design criteria manual and had
37 marked as Exhibit 1 a letter that he referred you
38 to.
39 Now, if I can take you to your affidavit of
40 March the 11th, sir, and I think it's in the
41 chambers record. Do you still have that before
42 you, sir?
43 A I don't know whether I have. What book is it
44 going to be in? I don't think it's in either of
45 these two.
46 Q Well, let me just --
47 A Okay.
48 Q Let me give you a copy of your affidavit.

62

1 A Okay.
2 Q Now, attached to the back of that affidavit as
3 Exhibit -- is it A or 1?
4 Exhibit A.
5 A Yes.
6 Q -- is a letter that you prepared to accompany the
7 latest revision of these -- of the design
8 criteria manual, if I can call it that.
9 A That's right.
10 Q And that was a letter that was -- was attached to
11 the manual?
12 A Yes.
13 Q For transmission with the manual?
14 A As far as I know, yes.
15 Q Yes. And so certainly, you have certified what
16 has now been provided to the -- to the plaintiffs
17 in the terms set out in Exhibit A to your
18 affidavit?
19 A Yes.
20 Q Now, while we're on your affidavit, sir, let me
21 take you to paragraph 4 on the body in the
22 affidavit. I'll just read that: "To my
23 knowledge, there are no other standard certified
24 engineering specifications or drawings regarding
25 thermophilic plants in the possession or control
26 of Thermo Tech Technologies and Thermo Tech Waste
27 Systems Inc. that are referred to in the order of
28 Mr. Justice Cohen."
29 Do you still stand by that statement, sir?
30 A I do, given the exemptions that the judge made
31 regarding the specifications for sourcing of
32 equipment and the construction.
33 Q And again, before making that statement, you made
34 enquiries to cover off that period of time that
35 you weren't working on a day-by-day basis --
36 A That's right, --
37 Q -- with Thermo Tech?
38 A -- yes.
39 Q Let me take you to paragraph 5, sir: "I have
40 reviewed an entered copy of the order of Mr.
41 Justice Cohen granted January 20th, 1998 in this
42 proceeding, and I verily believe the
43 documentation which I have delivered to O'Neill &
44 Company, for delivery to the solicitors for the
45 plaintiff herein, fully complies with the order
46 of Mr. Justice Cohen in every aspect."
47 Do you still stand by that statement?
48 A I do.

63

1 Q And in paragraph 7, that "I hereby certify that
2 the standard certified engineering specifications
3 now delivered fully satisfy what is reasonably
4 necessary to enable a licensee to utilize the
5 thermophilic aerobic digestion process, defined
6 as 'process' in the Eastern European Licence
7 Agreement of October 19th, 1992, and to construct
8 plants as defined in the said Eastern European
9 Licence Agreement."
10 Do you still stand by that, sir?
11 A I do.
12 Q So all that has been provided to these plaintiffs
13 at this point is sufficient to reasonably enable
14 them --
15 MR. LUNNY: Well, this is a leading question --
16 MR. BOWES: Well, it's --
17 MR. LUNNY: -- of incredible grasp. He's not supposed
18 to lead his question. I mean, the re-examination
19 is improper to date, anyway, but I haven't
20 objected to that. But a leading question is just
21 beyond the pale.
22 MR. BOWES: I'll leave that, my lord. I have what I
23 need.
24 Q Now, Mr. Lewis, my friend also took you to the
25 various patents. You will recall his questions
26 about the Coulthard patent?
27 A Yes.
28 Q And his point involving no provision for heating
29 in the Coulthard patent?
30 A Um-hum.
31 Q There were other patents that Thermo Tech had at
32 that time?
33 A They may have. I was only familiar with the --
34 with the one, the original Coulthard patent.
35 Q You're aware that there are four patents referred
36 to in the Eastern European Licence Agreement?
37 A Not specifically, no.
38 Q Okay. Well, I'll leave that, then.
39 Now, sir, my friend also asked you some
40 questions from the affidavit of Mr. Hole and from
41 the statement of defence. Are you familiar with
42 the memorandum of understanding that was
43 apparently entered into between Lockerbie Thermo
44 Tech and Trooper?
45 A No.
46 Q So anything arising out of that -- you're not
47 familiar with any part of that understanding?
48 A Not at all.

64

1 Q Were you aware that negotiations were ongoing to
2 have Lockerbie & Hole build plants for --
3 A Yes.
4 Q -- Trooper?
5 A Yes. Oh, not for Trooper. I know they were --
6 there were negotiations going on for Lockerbie &
7 Hole to build plants. I didn't know who they
8 were for.
9 Q Didn't know who they were for.
10 In 1992, had Thermo Tech got any plants up
11 and running?
12 A 1992? To be honest, my -- I don't really -- I
13 don't -- I couldn't date that. You know, I know
14 that they started up Corinth in, what was it,
15 ninety -- I would think '93, '94, something like
16 that.
17 Q Yes. Well, in fact, if I can take you to tab
18 2 -- or sorry -- Exhibit 2, tab 10, the book my
19 friend had just left with you, there's a news
20 release apparently dated September 13th, 1993,
21 setting out various stages of progress for
22 various of these companies. Do you have that
23 tab, sir?
24 A Yes. Yes, I've got that.
25 Q Reviewing this, can you now say that -- whether
26 or not there were any plants in operation by
27 September 13th, 1993?
28 A Well, no. Because it appears that Corinth said
29 they'll be in full operation by January 1994.
30 Q Yes.
31 MR. BOWES: Thank you, my lord. Those are my
32 questions.
33 MR. LUNNY: My lord, I had forgotten to mark the buff
34 book that was presented to the first witness as
35 an exhibit, and I've got a copy now for your
36 lordship.
37 MR. BOWES: Well, my lord, I take strong objection to
38 that book, as it is -- as it is bound, going
39 before your lordship. There are other materials
40 that have not been referred to there that I find
41 particularly offensive.
42 MR. LUNNY: That --. I'm not going to --. I accept
43 that, that there shouldn't -- it shouldn't be
44 admitted as evidence any tabs that weren't
45 referred to to the witness.
46 THE COURT: Sorry, just which booklet are you talking
47 about? This one?
48 MR. LUNNY: It's this one. Remember, I didn't have a

65

1 copy for your lordship.
2 THE COURT: Oh. Well, we'll mark it now for
3 identification purposes, and then you and your
4 friend can discuss what tabs, if any, ought to be
5 excised.
6 MR. LUNNY: Yes. That would be acceptable. Exhibit A
7 for identification, my lord?
8 THE REGISTRAR: A, yes. Thank you.
9
10 EXHIBIT A FOR IDENTIFICATION: Buff Binder of
11 Documents
12
13 MR. LUNNY: My lord, that's the cross-examinations on
14 behalf of the plaintiff.
15 THE COURT: Thank you.
16 A There's your two books.
17 MR. LUNNY: Thank you very much.
18 A Did you have that copy of the letter?
19 MR. LUNNY: That's an exhibit, I'm afraid.
20 A Oh, so that has to stay here?
21 MR. LUNNY: For the time being.
22 A Okay. That's fine.
23 MR. BOWES: I have another copy that --
24 A Okay. That's fine.
25 MR. BOWES: -- I can give back to you for your files.
26 A So I can take all this stuff away with me now?
27 MR. LUNNY: Yes.
28
29 (WITNESS EXCUSED)
30
31 MR. BOWES: My lord, before commencing the
32 cross-examination of Mr. Lis, the affidavit of
33 Mr. Liebowitz I don't think has been filed yet,
34 and I do certainly wish to have that filed.
35 MR. LUNNY: I'm objecting to the admissibility of this
36 affidavit, my lord.



To: Scott Levine who wrote (4263)6/5/1998 10:33:00 PM
From: CAYMAN  Read Replies (4) | Respond to of 6467
 
Scott

I have the same attitude on SI as I do on YaHoo. POSITIVE!

By what I hear yours is Negative........../ Individuals choice.

If your referring to the message I sent to Tom G.

Message 7088 of 7289 Reply

Tom G.

cayman_98
(F/Washington State) Jun 3 1998
11:31PM EDT

According to IR there will be 5 TMP's in Washington State.

Skagit Valley, Seattle, Olympia, Vancouver, and Yakima.

I can go for that!

JC
*******************************************************

Why do you say this is nonsense? I happen to believe it's true.

Regards,

CAYMAN