Jean Lefrançois

The respondent brought an incidental action in warranty against the appellant, a U.S. company with no domicile or place of business in Quebec, based on a contract for the manufacture of glass units.

The appellant filed a declinatory exception, arguing that Quebec courts lacked jurisdiction.

The Superior Court and the Court of Appeal dismissed the exception.

The Supreme Court of Canada dismissed the appeal, holding that under article 71 of the Code of Civil Procedure, an incidental action in warranty must be taken before the court in which the principal action is pending, and this rule of domestic territorial jurisdiction extends to international situations.

The appellant contractor entered into a contract with the Crown to build a dam.

The contractor encountered soil conditions significantly different from those indicated in the plans, leading to increased dewatering costs, and also faced delays due to additional work ordered by the Crown.

The contractor sued for additional costs.

The Supreme Court of Canada held that the contractor could not recover for the soil mistake because it failed to give the required notice under the contract.

However, the Court allowed the appeal in part, awarding the contractor compensation for the costs of delays caused by the additional work, as provided by the contract's clauses on extra work.