The respondents claimed $1,100,000 under a marine insurance policy issued by the appellant, a Yugoslav company, for a jewellery case lost during transit to Montreal.
The appellant challenged the Federal Court's jurisdiction, arguing that marine insurance falls under provincial jurisdiction over property and civil rights, making section 22(2)(r) of the Federal Court Act ultra vires.
The Supreme Court of Canada held that marine insurance is an integral part of maritime law and falls within Parliament's jurisdiction over navigation and shipping.
The Court affirmed the Federal Court's jurisdiction ratione materiae and ratione personae, dismissing the appeal.
