The appellants, Ontario farmers, purchased agricultural machinery from the respondents, whose business is located in Quebec near the Ontario border.
The appellants sued the respondents in Ontario and served the statement of claim outside Ontario.
The motion judge set aside the service and stayed the proceeding, finding that the respondents did not carry on business in Ontario and therefore Ontario courts lacked jurisdiction.
The Court of Appeal allowed the appeal, finding that the motion judge made a palpable and overriding error.
The evidence showed the respondents solicited sales in Ontario, derived 40% of their sales revenue from Ontario, operated a mobile repair service in Ontario, and maintained a GPS system in Ontario to support the machinery sold there.
Therefore, the respondents carried on business in Ontario, establishing a real and substantial connection, and Ontario courts have jurisdiction.