The plaintiff RCI entered into an agreement to manufacture and install assembly lines for TMG in Ontario.
TMG later substituted its subsidiary TMC as the purchaser, allegedly providing assurances alongside its bank, Sparkasse, that they would guarantee payment.
When TMC failed to pay, RCI sued TMG and Sparkasse in Ontario for breach of contract and negligent misrepresentation.
The motion judge stayed the action, finding no jurisdiction simpliciter and that Ontario was forum non conveniens.
The Court of Appeal allowed the appeal, holding that Ontario had jurisdiction simpliciter based on the tort and contract occurring in Ontario, the forum selection clauses did not apply to the guarantee claims, and the defendants failed to show Germany was clearly a more appropriate forum.