The plaintiffs commenced a proposed class action alleging that the defendant airline improperly charged United States transportation taxes on ticket purchases.
The defendant moved to dismiss or stay the action for lack of jurisdiction and on the basis of forum non conveniens.
The court held that Ontario had presence‑based jurisdiction because the defendant carried on business in Ontario and there was a real and substantial connection to the dispute.
The revenue rule did not bar adjudication because the action did not seek to enforce foreign tax laws but rather challenged the defendant’s collection of charges from customers.
The motion was dismissed with respect to claims relating to tickets paid for in Canada but granted in relation to tickets paid for in the United States, which were stayed as U.S. courts were the clearly more appropriate forum.
