In a recent decision, a five judge panel of the Court of Appeal for Ontario revised the legal test to be applied when the Ontario courts are asked to assume jurisdiction over a foreign defendant. The Court’s decision in Van Breda v. Village Resorts Ltd. clarifies the applicable legal principles and should provide greater guidance to Ontario courts on whether and when they can properly take jurisdiction over foreign defendants.

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This past summer, Ontario’s highest court made it clear that contracting parties who choose a particular nation’s courts for the litigation of their disputes will almost always be held to their choice – even where that forum may not conform to the traditional Canadian concepts of democracy and fairness.

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Ontario’s Court of Appeal recently recognised a U.K. High Court’s initial order in a scheme of arrangement aimed at winding up the reinsurance business of Cavell Insurance Company Limited. It did so despite the fact that the U.K. court’s order did not meet the traditional requirement that only a final judgment of a foreign court for the payment of a definite sum of money will be enforced in Canada.

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Citing the Internet’s unique potential to cause harm anywhere and everywhere, Madam Justice Lax of Ontario’s Superior Court of Justice enforced a New York District Court judgment earlier this month against the operators of Ontario-based websites that facilitated the illegal copying and downloading of movies.

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BY KENNETH DEKKER, JENNIFER ROBERTS-LOGAN, MICHAEL OSBORNE AND TANISHA TULLOCH Canada’s Top Court Highlights the Perils of Ignoring Foreign Actions Beals v. Saldanha, 2003 SCC 72 Two Ontario residents who were sued on an $8,000.00 (U.S.) Florida land deal are likely regretting their decision to ignore the Florida litigation that ultimately led to a $800,000.00 [...]

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