The defendant, Canadian Pacific Railway Company (CP), brought a motion to dismiss the plaintiff, Aureus Solutions Inc.'s (Aureus), Statement of Claim for lack of jurisdiction, citing a forum selection clause in their Supply of Services Agreement (SSA) which granted exclusive jurisdiction to Alberta courts.
Aureus argued the clause was inapplicable as the dispute's substance predated the contract or involved fraudulent misrepresentation rendering the contract void.
The court applied the two-stage test from Z.I. Pompey Industrie v. ECU-Line N.V., finding the forum selection clause valid and enforceable.
The court ruled that allegations of fundamental breach or voidability were insufficient to provide "strong cause" to oust the clause, especially given the parties were sophisticated commercial entities.
The motion was granted, and the action dismissed.
