The plaintiff, 2Source Manufacturing Inc., sued the defendants for fraudulent misrepresentation, deceit, conspiracy, unlawful interference with economic relations, and breach of the Competition Act, alleging they were misled about the renewal of a Supply Agreement.
The defendants moved for summary judgment to stay the action, relying on a forum selection clause (FSC) in the Supply Agreement that mandated New York courts.
The court interpreted the FSC broadly to cover claims "in pith and substance contractual," even if framed in tort or statute.
It found 2Source's claims to be contractual in nature, arising from the performance, termination, or renewal of the Supply Agreement.
The court also found no "strong cause" to deny the stay, as 2Source failed to demonstrate fraud, inability of the New York court to hear the claim, or public policy frustration.
The motion for a stay of proceedings was granted.