The Republic of Korea (South Korea) moved to dismiss Best Theratronics Ltd.'s breach of contract action and set aside an injunction preventing The ICICI Bank of Canada from disbursing funds under a Standby Letter of Credit (SBLC).
Best Theratronics Ltd. cross-moved to extend the injunction.
The court found that a forum selection clause in the contract granted exclusive jurisdiction to South Korean courts for the main action between Best and South Korea, leading to a stay of those proceedings in Ontario.
However, the court extended the temporary injunction against The ICICI Bank of Canada, noting that the SBLC was governed by Ontario law and the Bank was not bound by the forum selection clause.
The injunction was continued on terms to allow Best to pursue remedies in South Korea, with provisions for its eventual termination.
