The appellant, ITP SA, appealed a Master's decision granting a stay of an Ontario action commenced by the respondent, Nexen Energy ULC.
The parties' contract contained a forum selection clause designating Ontario courts and Alberta law.
Following a pipeline rupture, Nexen commenced a multi-party action in Alberta and a protective action in Ontario against ITP.
ITP sought to use the Ontario action solely to determine two limitation of liability clauses under the forum selection clause, while agreeing the rest of the action could proceed in Alberta.
The Master stayed the Ontario action, finding 'strong cause' to deviate from the forum selection clause because ITP could not 'slice and dice' the litigation.
The Divisional Court dismissed the appeal, finding the Master applied the correct test and made no palpable and overriding error.