The respondent commenced an action in Quebec claiming damages for loss of performance incentives and reputation after a satellite it helped manufacture was damaged during testing.
The appellants, all domiciled in the United States, brought declinatory motions challenging the jurisdiction of the Quebec courts under the Civil Code of Québec.
The Supreme Court of Canada held that the Quebec courts had jurisdiction because the respondent suffered damage to its reputation at its Quebec facility.
The Court further held that the 'real and substantial connection' test is subsumed within the Code's provisions and that the appellants failed to establish that another forum was clearly more appropriate under the doctrine of forum non conveniens.