David Church

The appellant sued Quebec asbestos companies in British Columbia for damages related to asbestos exposure.

He sought discovery of documents.

The respondents refused, citing the Quebec Business Concerns Records Act, which prohibits removing business documents from Quebec pursuant to foreign judicial orders.

The BC courts declined to rule on the constitutionality of the Quebec statute and dismissed the application to compel production.

The Supreme Court of Canada allowed the appeal, holding that the BC courts and the SCC had jurisdiction to consider the constitutionality of the Quebec statute.

Applying the principles from Morguard, the Court held that the Quebec blocking statute was constitutionally inapplicable to proceedings in other provinces because it offended the principles of order and fairness inherent in the Canadian federation.

The appellant insurers issued an aviation insurance policy to a commercial air carrier.

The carrier misrepresented its accident record and the number of passenger seats on the aircraft.

The aircraft subsequently crashed, killing all passengers.

The families of the deceased passengers sought to recover from the insurers under a statutory right of action.

The Supreme Court of Canada held that the insurers were entitled to rely on the carrier's representation regarding the number of passenger seats.

Because the carrier violated this term, the policy was void ab initio against the carrier.

As the families' statutory right of action was subject to the same equities as the insurers could assert against the carrier, the families could not recover.

The appeal was allowed.