The respondents filed an action in the Federal Court for damages to cargo during rail transit.
The appellant sought a stay of proceedings, relying on a forum selection clause in the bill of lading that granted exclusive jurisdiction to the courts in Antwerp, Belgium.
The prothonotary, motions judge, and Federal Court of Appeal denied the stay, applying the tripartite test for interlocutory injunctions and considering whether a fundamental breach voided the clause.
The Supreme Court of Canada allowed the appeal, holding that the 'strong cause' test is the proper standard for enforcing forum selection clauses in bills of lading, and that allegations of fundamental breach should be determined by the chosen forum.
