The defendant foreign hotel corporation brought a motion to set aside service of a statement of claim, arguing that service at a Toronto office operated by a marketing contractor did not constitute valid service under the Rules of Civil Procedure.
The plaintiff cross-moved for a declaration that service was proper or, alternatively, for validation of service.
The court applied the test for whether a foreign corporation carries on business in Ontario and examined the contractual marketing relationship between the defendant and the Ontario-based marketing company.
It held that the marketing activities were integral to the defendant’s business and constituted carrying on business in Ontario.
Service effected at the Toronto office was therefore valid, and the defendant’s motion was dismissed.
