The defendant brought a motion to stay or dismiss an Ontario action for lack of jurisdiction.
The plaintiffs sought contribution and indemnity from the defendant in relation to a large American judgment arising from their lottery resale business.
Applying the real and substantial connection test clarified in Club Resorts Ltd. v. Van Breda, the court considered whether the defendant carried on business in Ontario.
The court found that the defendant’s indirect relationship with the plaintiffs through an authorized retailer in Prince Edward Island, a single audit visit, and termination of a retailer agreement did not establish that the defendant carried on business in Ontario.
The motion was granted and the action stayed for lack of jurisdiction.
