The British Columbia Court of Appeal considered how forum selection clauses are to be treated in the analysis of the Court Jurisdiction and Proceedings Transfer Act, S.B.C. 2003, c. 28 (the "Act"), to determine whether the British Columbia Court should take jurisdiction. The Court held that the Act doesn’t alter the general approach to be taken when the parties agree to a forum selection clause.
The parties had agreed by contract to be governed exclusively by the laws of Quebec. Section 3(c) of the Act contains the only reference in the Act to forum selection clauses, but this deals only with the situation where the parties have agreed that British Columbia will be the forum. The court held that the Act does not alter the general approach to be taken when the parties agree to a forum selection clause. If the court has or can assume jurisdiction, it should decline jurisdiction if there is a forum selection clause or if there is a determination of forum non conveniens. The existence of a forum selection clause can be sufficient reason for a court to decline jurisdiction, and it is not simply a factor to consider in making a determination under s. 11. In this case, the forum selection clause was enforced and the appeal dismissed.
June 2, 2011
Link to Decision
Fidelia Ho
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