The defendants, Borden Ladner Gervais LLP and Robb McNaughton, brought a motion to stay an Ontario action initiated by the plaintiff, Pesorama Inc., on the basis of forum non conveniens.
The defendants argued that a forum selection clause in the retainer agreement between the parties stipulated Alberta as the exclusive jurisdiction for disputes.
The court applied the two-step test for enforcing forum selection clauses, finding the clause valid, clear, and applicable.
It determined that Pesorama Inc. failed to demonstrate "strong cause" to override the clause, particularly given the sophisticated nature of the parties and the commercial context of the dispute.
The court also noted the ongoing taxation process in Alberta and the inefficiency of parallel proceedings.
The motion was granted, and the Ontario action was stayed, allowing the plaintiff to pursue its claim in Alberta.