Court Of Appeal For Ontario Confirms Test For Assumption Of Jurisdiction By Ontario Courts

In Central Sun Mining Inc v Vector Engineering Inc., the Court of Appeal for Ontario recently considered when Ontario courts may assume jurisdiction of an action.1 This decision is of interest to parties who wish to commence, or are defending, an action involving events that occurred in more than one jurisdiction. These issues are often complicated, but always important—especially considering the increasingly cross-border nature of many business transactions.

Central Sun involved a dispute between an Ontario-based mining company, Central Sun, and a group of American engineering consultants, Vector. The litigation centred on consulting services Vector provided to Central Sun in relation to a mine it owns in Costa Rica, including recommendations regarding its design, stability, location and operation. Following the destruction of the mine by a major landslide, Central Sun brought a claim for damages in Ontario against Vector on the grounds of negligence, negligent misrepresentation and breach of contract in relation to the reports it provided.

At issue in the appeal was whether or not the Ontario court could properly assume jurisdiction over the action. As described...