472900 B.C. Ltd. et al. v. Thrifty Canada Ltd., 116 BCAC 233

• Judge: Esson, Donald, Huddart, Braidwood and Mackenzie, JJ.A.
• Court: Court of Appeal (British Columbia)
• Case Date: December 18, 1998
• Jurisdiction: British Columbia
• Citations: 116 BCAC 233;(1998), 116 B.C.A.C. 233 (CA);1998 CanLII 6522 (BC CA);[1998] BCJ No 2944 (QL);[1999] 6 WWR 416;168 DLR (4th) 602;84 ACWS (3d) 863;57 BCLR (3d) 332;116 BCAC 233

472900 B.C. Ltd. v. Thrifty Can. (1998), 116 B.C.A.C. 233 (CA);

   190 W.A.C. 233

MLB headnote and full text

Temp. Cite: [1999] B.C.A.C. TBEd. JA.035

472900 B.C. Ltd., 331494 B.C. Ltd. and Leisure Canada Inc. (plaintiffs/respondents) v. Thrifty Canada Ltd. (defendant/appellant)

(CA023129)

Indexed As: 472900 B.C. Ltd. et al. v. Thrifty Canada Ltd.

British Columbia Court of Appeal

Esson, Donald, Huddart, Braidwood and Mackenzie, JJ.A.

December 18, 1998.

Summary:

An Ontario company, Thrifty, held the Canadian rights to license others to carry on the Thrifty car rental business. An area licence agreement authorized 472900 to license others in British Columbia to carry on business as Thrifty Rent-A-Car. In 1996 Thrifty sued 472900 in Ontario for monies allegedly owing under the agreement. Days later, 472900 sued Thrifty in British Colum­bia for rescission or damages because of alleged false representations, negligence and breach of good faith. 472900 applied in the Ontario action for an order that the Ontario court decline jurisdiction. The motion was dismissed. An application for leave to appeal to the Ontario Divisional Court was dis­miss­ed. Thrifty then applied under rule 14(6) in the B.C. action for an order that the B.C. court stay the B.C. action. A Chambers judge dismissed the application. Thrifty appealed.

The British Columbia Court of Appeal allowed the appeal and stayed the B.C. action.

Conflict of Laws - Topic 1662

Actions - General - Forum conveniens - Defined - The British Columbia Court of Appeal stated that forum conveniens referred not to the more convenient forum, but to the appropriate forum - See para­graph 31.

Conflict of Laws - Topic 1666

Actions - General - Forum conveniens - Stay of proceedings where action pending in another jurisdiction (lis alibi pendens) - Thrifty, an Ontario corporation, sued 472900 in Ontario - Days later, 472900 sued Thrifty in B.C. - The two proceed­ings arose out of the same matter and raised the same issues - An Ontario court refused to decline jurisdiction - A B.C. Chambers judge, noting that an Ontario judge had found Ontario to be an appro­priate forum, held that for the B.C. court to decline jurisdiction, Thrifty must show that Ontario was clearly a more appropri­ate forum to resolve the claims - The British Columbia Court of Appeal, noting that the Ontario court declined to stay the Ontario action, and considering the matter of com­ity between provinces, stayed the B.C. action - See paragraphs 63 to 64.

Conflict of Laws - Topic 1666

Actions - General - Forum conveniens - Stay of proceedings where action pending in another jurisdiction (lis alibi pendens) - Actions in Ontario and in British Columbia arose out of the same matter and raised the same issues - Both courts had jurisdiction -At issue was whether the B.C. action should be stayed - The British Columbia Court of Appeal stated that the court should determine which was the more appropriate forum - The court referred to the governing principles and the proper considerations - See paragraph 32.

Cases Noticed:

Ship Atlantic Star, Re; Ship Atlantic Star (Owners) v. Ship Bona Spes (Owner), [1974] A.C. 436 (H.L.), consd. [para. 12].

MacShannon v. Rockware Glass Ltd., [1978] A.C. 795 (H.L.), consd. [para. 12].

Amin Rasheed Shipping Corp. v. Kuwait Insurance Co.; Ship Al Wahab, Re, [1984] A.C. 50 (H.L.), consd. [para. 12].

Ship Las Mercedes (Owners) v. Ship Abidin Daver (Owners); Ship Abidin Daver, Re, [1984] A.C. 398; [1984] 1 All E.R. 470 (H.L.), consd. [para. 12].

Spiliada Maritime Corp. v. Cansulex Ltd., [1987] A.C. 460; 71 N.R. 372; [1987] 3 All E.R. 843 (H.L.), refd to. [para. 12].

St. Pierre v. South American Stores (Gath & Chaves) Ltd., [1936] 1 K.B. 382 (C.A.), consd. [para. 13].

Sim v. Robinow (1892), 19 R. 665, refd to. [para. 29].

Antares Shipping Corp. v. Ship Capricorn et al., [1977] 2 S.C.R. 422; 7 N.R. 518, consd. [para. 34].

Amchem Products Inc. et al. v. Workers' Compensation Board (B.C.), [1993] 1 S.C.R. 897; 150 N.R. 321; 23 B.C.A.C. 1; 39 W.A.C. 1; [1993] 3 W.W.R. 441; 77 B.C.L.R.(2d) 62; 102 D.L.R.(4th) 96; 14 C.P.C.(3d) 1, consd. [para. 37].

Jak et al. v. Societe Nationale Industrielle Aerospatiale, [1987] 3 All E.R. 510; 108 N.R. 380 (P.C.), refd to. [para. 39].

Avenue Properties Ltd. v. First City Devel­opment Corp. (1986), 7 B.C.L.R.(2d) 45 (C.A.), not folld. [para. 44].

Morguard Investments Ltd. et al. v. De Savoye, [1990] 3 S.C.R. 1077; 122 N.R. 81; [1991] 2 W.W.R. 217; 76 D.L.R.(4th) 256; 52 B.C.L.R.(2d) 160; 46 C.P.C.(2d) 1, refd to. [para. 45].

Rogers v. Bank of Montreal, [1984] 2 W.W.R. 597 (B.C.C.A.), disagreed with [para. 51].

Tompkins Contracting Ltd. v. Northern Clearing Enterprises Ltd. (1964), 50 W.W.R.(N.S.) 246 (B.C.C.A.), refd to. [para. 53].

Ecco Heating Products Ltd. v. Campbell (J.K.) & Associates Ltd. (1990), 48 B.C.L.R.(2d) 36 (C.A.), refd to. [para. 61].

Statutes Noticed:

Rules of Court (B.C.), Supreme Court Rules, rule 14(6)(c) [para. 10].

Counsel:

H. Van Ommen, for the appellant;

G. Harney, for the respondents.

This appeal was heard at Vancouver, British Columbia, on November 17, 1998, before Esson, Donald, Huddart, Braidwood and Mackenzie, JJ.A., of the British Colum­bia Court of Appeal.

On December 18, 1998, Esson, J.A., delivered the following judgment for the Court of Appeal.