The appellants, owners of a professional baseball team, sued the Can-Am League, its principals, and the City of Ottawa in Ontario after the League terminated their membership and drew down a letter of credit.
The agreements between the parties contained choice of forum and arbitration clauses designating North Carolina.
The defendants successfully moved to dismiss the action for lack of jurisdiction.
On appeal, the appellants argued the defendants attorned to Ontario's jurisdiction by filing a statement of defence, and that fundamental breach precluded reliance on the clauses.
The Court of Appeal dismissed the appeal, holding that the appellants failed to show strong cause to displace the choice of forum clause, and that attornment does not prevent a court from declining to exercise its jurisdiction.
