Stéphane Pitre

The appellants sought leave to appeal a Quebec Court of Appeal decision that denied leave to appeal a Superior Court authorization of a class action against automobile manufacturers for punitive damages arising from non-compliance with environmental standards.

The Superior Court had authorized the class action with respect to punitive damages only, declining to authorize the compensatory damages claim.

A majority of the Supreme Court found the Court of Appeal judge did not err in exercising her discretion to deny leave.

The minority would have granted leave on the basis that a question of law warranting appellate review had been raised, and would have remanded the matter to the Court of Appeal for a decision on the merits.

The respondent, Transat Tours Canada Inc., sought an injunction in Quebec Superior Court against several Mexican corporations for breach of an exclusive hotel room leasing contract containing a Quebec forum selection clause.

The Mexican defendants brought a motion for declinatory exception, arguing the Quebec courts lacked jurisdiction to issue extraterritorial relief and should decline jurisdiction under the doctrine of forum non conveniens.

The Supreme Court of Canada affirmed the Court of Appeal's decision that the Superior Court had jurisdiction to issue the injunction and that the difficulty of enforcing extraterritorial orders does not negate this power or automatically trigger forum non conveniens.