Archive for the ‘presence-based jurisdiction’ Category

The Lawyers Weekly article discusses Ont. C.A. decision in Wang v. Lin

March 6, 2013

As a follow-up to my recent post on the Court of Appeal for Ontario decision in Wang v. Lin, I’m quoted in an article by Christopher Guly in the The Lawyers Weekly March 8-13 issue: “When family breakdown spans the globe, from China to Canada“.

Ontario Court of Appeal: Jurisdiction Simpliciter Established by Defendant’s Residence in Ontario and Attornment

February 26, 2013
Court of Appeal window

Court of Appeal window (Photo credit: lancea)

The Court of Appeal for Ontario in Zhang v. Hua Hai Li Steel Pipe Co. Ltd., 2013 ONCA 103 (CanLII), has reaffirmed that jurisdiction simpliciter is established by presence-based jurisdiction and consent-based jurisdiction (delivery of a Statement of Defence and other merit-based steps constitute attornment):

[5]         In our view, the appeal should be dismissed but for reasons different from those given by the motion judge.

[6]         This is not a jurisdictional case.  The respondents live and were served in Ontario and the Ontario courts accordingly have jurisdiction.  It is also significant that before the respondents brought the motion challenging the jurisdiction of the court, the appellants filed a statement of defence and took other steps in connection with the action.  Even if the appellants had not been served within Ontario, they have attorned to the jurisdiction.

[7]         The forum non conveniens issue is not relevant.

[8]         We see no merit in this appeal and it is therefore dismissed.

“Ordinary Residence” and “Habitual Residence” are the applicable jurisdictional tests in family law disputes, Ontario appeal court rules

January 24, 2013

The Court of Appeal for Ontario in Wang v. Lin, 2013 ONCA 33 (CanLII) has held that the presumptive factors in  Club Resorts Ltd. v. Van Breda2012 SCC 17 (CanLII), 2012 SCC 17, [2012] 1 S.C.R. 572 (S.C.C.) do not fit within the established statutory scheme for asserting jurisdiction in family law matters under the Divorce Act, R.S.C. 1985, c. 3 (2nd Supp.); the Family Law Act, R.S.O. 1990, c. F.3 (the “FLA”); and the Children’s Law Reform Act, R.S.O. 1990, c. C.12 (the “CLRA”). Rather, “ordinary residence” and “habitual residence” (arguably, “presence-based jurisdiction”) are the applicable jurisdictional tests under the Divorce Act and the CLRA,respectively:

[46] Turning to whether Ontario has jurisdiction under the common law test that requires a real and substantial connection, I agree with the parties that, in the context of marriage breakdown, the presumptive connecting factors are necessarily different from those identified by the Supreme Court in Van Breda in the context of a tort case. The Supreme Court in Van Breda was clear that the list of presumptive factors it identified related to tort claims and issues associated with those claims, and that the list of presumptive connecting factors is not closed. At para. 91, the court directed that:

In identifying new presumptive factors, a court should look to connections that give rise to a relationship with the forum that is similar in nature to the ones which result from the listed factors. Relevant considerations include:

(a) Similarity of the connecting factor with the recognized connecting factors;

(b) Treatment of the connecting factor in the case law;

(c) Treatment of the connecting factor in statute law; and

(d) Treatment of the connecting factor in the private international law of other legal systems with shared commitment to order, fairness and comity.

[47] While they differ in their view as to where, in this case, the “real home” or ordinary residence of the mother is, both parties submit that the location of the “real home” or “ordinary residence” should be a presumptive connecting factor. This in my view makes eminently good sense. Ordinary residence and habitual residence are the jurisdictional tests under the Divorce Act and the CLRA, respectively. Accepting the “real home” or “ordinary residence” as a presumptive connecting factor, and having concluded that the motion judge did not err in finding that the mother was not ordinarily resident in Ontario, I agree with the motion judge that “[t]he facts of this case do not support the existence of a presumptive connecting factor that would entitle this court to presume jurisdiction.” The mother therefore did not satisfy the “real and substantial connection test”, and the courts of Ontario do not have jurisdiction over the mother’s corollary claims under the FLA. Given this, it is not necessary to address the parties’ arguments on the issue of forum non conveniens.

 

UK Supreme Court Rejects Supreme Court of Canada’s Jurisdictional Test for Enforcing Foreign Judgments

October 30, 2012

The UK Supreme Court has rejected outright the Supreme Court of Canada’s “real and substantial connection” test for recognition and enforcement of foreign default judgments.

The UK decision in Rubin v. Eurofinance [2012] UKSC 46 arises from two appeals:  Rubin v Eurofinance SA (“Rubin”) and New Cap Reinsurance Corpn Ltd v Grant (“New Cap”), both dealing with the issue of whether an order or judgment of a foreign court (on these appeals the United States Bankruptcy Court for the Southern District of New York, and the New South Wales Supreme Court) in proceedings to adjust or set aside prior transactions, e.g, preferences or transactions at an undervalue (“avoidance proceedings”), will be recognised and enforced in England.

The appeals also address whether enforcement may be effected through the international assistance provisions of the UNCITRAL Model Law (implemented by the CrossBorder Insolvency Regulations 2006 (SI 2006/1030)  (“CBIR”)), which applies generally, or the assistance provisions of section 426 of the Insolvency Act 1986, which applies to a limited number of countries, including Australia.  (more…)

Ontario Court of Appeal rejects third party claims as a new presumptive category for asserting jurisdiction

July 9, 2012

Today’s decision of the Court of Appeal for Ontario in Export Packers Company Limited v. SPI International Transportation, 2012 ONCA 481 (Ont. C.A.) [“Export Packers”] confirms that a defendant’s third party claim does not amount to a “real and substantial connection” unless one of the (4) presumptive connecting factors set out in Club Resorts Ltd. v. Van Breda, [2012] S.C.R. 17 are present.

In Export Packers, the plaintiff, Export Packers Company Limited (“Export”), an Ontario food product seller, bought a shipment of 1,320 cartons of frozen pork spareribs from a Quebec company, A. Trahan Transformation (“Trahan”), which stored the cargo with Entrepôt du Nord Cold Storage Inc. (“EDN”) at its cold storage facility in Laval, Quebec. Export contracted with SPI International Transportation (“SPI”), a B.C. shipping agent and load broker with two offices in Ontario, to arrange transportation of the cargo from the EDN warehouse to a customer in Florida.  SPI then contracted with the third party, 726509 Ontario Inc. o/a Transvision Logistics (“Transvision”), to transport the cargo to Florida.  A rogue party purporting to represent Transvision picked up the cargo at EDN’s warehouse and absconded with the goods.

Export sued SPI for breach of contract and negligence.  SPI defended and commenced third party claims against Transvision and EDN, alleging that EDN was negligent in failing to ask for sufficient identification from the rogue.  EDN then moved to stay the third party claim on the basis of lack of jurisdiction, which the motion judge, Stinson J., granted due to an absence of a real and substantial connection between EDN and the claim against it on the one hand and Ontario on the other.

SPI appealed.

The Court of Appeal for Ontario dismissed SPI’s appeal and held that none of the four presumptive factors were present:

a) EDN is not domiciled or resident in the province: (at para. 10)

b) EDN does not carry on business in the province: (at para. 10)

c) the tort (negligent storage) was committed in the province of Quebec, not Ontario: (at para. 11)

d) the three contracts relied upon by SPI related to arrangements between the owner, the broker and the proposed carrier of the cargo, none of which are connected to EDN and all of which were made in the province of Quebec, not Ontario (at paras. 13-16)

SPI argued for creation of a new presumptive factor that EDN was a proper third party in the underlying action pursuant to the test set out in Rule 29 of the Ontario Rules of Civil Procedure, ostensibly on the grounds of promoting the goals of efficiency and fairness. (at para. 18-19). The appeal panel held:

[22]       We recognize that there may be efficiencies from a defendant’s standpoint, at least, in prosecuting a third party claim in the same jurisdiction as it defends the claim against it.  However, that potential efficiency should not, in itself, be a sufficient reason to create a new presumptive category by which Ontario courts assume jurisdiction.  There must be some factual connection to Ontario in the new presumptive factor.

[23]       Thus, we do not accept the appellant’s argument that the fact that the claim against EDN is a third party claim brought within an existing Ontario action should, without more, be sufficient to create a presumption that Ontario has jurisdiction over that claim.

The Court of Appeal concludes with a cryptic comment:

[24]       In Van Breda, the Supreme Court of Canada appears to have held that if there are no presumptive connecting factors, courts should not assume jurisdiction (paras. 93 and 100).  Whether that is the case or not, we agree with the motion judge that in this case there is not a sufficient real and substantial connection between EDN and Ontario or between the cause of action asserted against EDN and Ontario to warrant Ontario accepting jurisdiction. [emphasis added]

One would think that the Supreme Court of Canada was clear on this point.

WF4E3J4BM539


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