The taxpayer successfully defended a suit by the Canadian Shredded Wheat Company claiming that the taxpayer was infringing its registered trademark consisting of the words "Shredded Wheat". The taxpayer's legal expenses were held to fall within the general rule "that in the ordinary course legal expenses are simply current expenditures and deductible as such". Duff C.J. distinguished the Dominion Natural Gas case on the ground that:
"The right upon which the respondents relied was not a right of property, or an exclusive right of any description, but the right (in common with all other members of the public) to describe their goods in the manner in which they were describing them."