GreCon Dimter Inc. v. Normand (J.R.) Inc. et al., (2005) 336 N.R. 347 (SCC)

• Judge: McLachlin, C.J.C., Bastarache, Binnie, LeBel, Deschamps, Fish and Charron, JJ.
• Court: Supreme Court (Canada)
• Case Date: July 22, 2005
• Jurisdiction: Canada (Federal)
• Citations: (2005), 336 N.R. 347 (SCC);2005 SCC 46;JE 2005-1369;255 DLR (4th) 257;[2005] SCJ No 46 (QL);EYB 2005-93019;141 ACWS (3d) 47;[2005] 2 SCR 401;[2005] CarswellSask 268;336 NR 347

GreCon Dimter Inc. v. Normand Inc. (2005), 336 N.R. 347 (SCC)

MLB headnote and full text

[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

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Temp. Cite: [2005] N.R. TBEd. JL.005

GreCon Dimter Inc. (appellant) v. J.R. Normand Inc. and Scierie Thomas-Louis Tremblay Inc. (respondents)

(30217; 2005 SCC 46; 2005 CSC 46)

Indexed As: GreCon Dimter Inc. v. Normand (J.R.) Inc. et al.

Supreme Court of Canada

McLachlin, C.J.C., Bastarache, Binnie, LeBel, Deschamps, Fish and Charron, JJ.

July 22, 2005.

Summary:

Normand purchased sawmill equipment from German manufacturer GreCon for resale to Tremblay. Tremblay sued Normand in Quebec Superior Court for breach of contract. In turn, Normand brought an action in warranty in Quebec Superior Court against GreCon. GreCon invoked the choice of forum clause in its contract with Nor­mand, said that the German courts had exclusive jurisdiction over the matter and brought a motion asking the Quebec Superior Court to decline jurisdiction.

The Quebec Superior Court, in a decision reported [2003] R.L. 260, dismissed the motion. GreCon appealed.

The Quebec Court of Appeal, in a decision reported [2004] R.J.Q. 88, dismissed the appeal. GreCon appealed.

The Supreme Court of Canada allowed the appeal. The motion for a declinatory excep­tion was allowed and Normand's action in warranty against GreCon was dismissed.

Quebec Civil Law - Topic 9040

Conflict of laws - International jurisdiction of Quebec authorities - Personal actions of a patrimonial nature - Article 3148, para. 2 of the Québec Civil Code provided that a Quebec authority did not have jurisdic­tion in personal actions of a patrimonial nature where the parties have, by agree­ment, chosen to submit a dispute to a for­eign authority - Article 3139 provided that where a Quebec authority had jurisdic­tion on the principal demand, it also had juris­diction to rule on an incidental de­mand - Finally, art. 3135, which codified the forum non conveniens doctrine, pro­vided that even though a Quebec authority had jurisdiction to hear a dispute, it could decline jurisdiction if it considered that the authorities of another country were in a bet­ter position to decide - A choice of forum clause in the contract between Gre­Con and Normand referred disputes to the exclusive jurisdiction of German courts - Tremblay sued Normand in Quebec Su­per­ior Court for breach of contract relating to equipment manufactured and sold by Gre­Con to Normand and then resold to Trem­blay - Normand brought an action in war­ranty against GreCon in the Quebec Su­perior Court - At issue was whether the Quebec courts had jurisdiction over Nor­mand's action in warranty - The Supreme Court of Canada interpreted arts. 3148, 3149 and 3135 in the context of their legislative framework and the interna­tional commitments of Canada and Que­bec, dis­cussed the nature of the relation­ships be­tween them, ruled that the inten­tion of the parties had primacy except where expressly indicated, gave effect to the choice of forum clause and held that the German courts had exclusive jurisdic­tion - As for forum non conveniens, a court could not de­cline a jurisdiction that it did not have.

Quebec Civil Law - Topic 9042

Conflict of laws - International jurisdiction of Quebec authorities - Forum non con­veniens - [See Quebec Civil Law - Topic 9040 ].

Quebec Civil Law - Topic 9043

Conflict of laws - International jurisdiction of Quebec authorities - Incidental demand - [See Quebec Civil Law - Topic 9040 ].

Quebec Civil Law - Topic 9044

Conflict of laws - International jurisdiction of Quebec authorities - Choice of forum clause - [See Quebec Civil Law - Topic 9040 ].

Cases Noticed:

Crestar Ltd. v. Canadian National Railway Co., [1999] R.J.Q. No. 1191 (Sup. Ct.), refd to. [para. 9].

Spar Aerospace Ltd. v. American Mobile Satellite Corp. et al., [2002] 4 S.C.R. 205; 297 N.R. 83; 2002 SCC 78, refd to. [para. 19].

Lamborghini (Canada) Inc. v. Automobili Lamborghini S.P.A., [1997] R.J.Q. 58 (C.A.), refd to. [para. 21].

Pompey (Z.I.) Industrie et al. v. Ecu-Line N.V. et al., [2003] 1 S.C.R. 450; 303 N.R. 201; 2003 SCC 27, refd to. [para. 22].

Morguard Investments Ltd. et al. v. De Savoye, [1990] 3 S.C.R. 1077; 122 N.R. 81, refd to. [para. 22].

Holt Cargo Systems Inc. v. ABC Con­tain­erline N.V. (Bankrupt) et al., [2001] 3 S.C.R. 907; 280 N.R. 1; 2001 SCC 90, refd to. [para. 22].

Desputeaux v. Editions Chouette (1987) Inc., [2003] 1 S.C.R. 178; 301 N.R. 220; 2003 SCC 17, refd to. [para. 22].

171486 Canada Inc. v. Rogers Cantel Inc., [1995] R.D.J. 91 (Sup. Ct.), refd to. [para. 26].

Dobexco Foods International Inc. v. Van Barneveld Gouda Bv, [1997] Q.J. No. 1100 (Sup. Ct.), refd to. [para. 26].

Conserviera S.p.A. v. Paesana Import-Export Inc., [2001] R.J.Q. 1458 (C.A.), refd to. [para. 26].

Eagle River International Ltd. (Syndic de), Re, [1999] R.J.Q. 1497 (Sup. Ct.), refd to. [para. 27].

Intergaz Inc. v. Atlas Copco Canada Inc., [1997] Q.J. No. 3942 (Sup. Ct.), refd to. [para. 27].

Equipements E. Lamontagne ltée v. Equipe­ments Belarus du Canada ltée, [1994] R.D.J. 599, refd to. [para. 27].

Birdsall Inc. v. In Any Event Inc., [1999] R.J.Q. 1344 (C.A.), refd to. [para. 30].

Productions Musicales Donald K. Donald c. Guns N' Roses Missouri Storm Inc., [1994] R.J.Q. 1183; 63 Q.A.C. 54 (C.A.), refd to. [para. 31].

National Corn Growers' Association et al. v. Canadian Import Tribunal, [1990] 2 S.C.R. 1324; 114 N.R. 81, refd to. [para. 39].

Pushpanathan v. Canada (Minister of Citi­zenship and Immigration), [1998] 1 S.C.R. 982, addendum [1998] 1 S.C.R. 1222; 226 N.R. 201, refd to. [para. 39].

Ordon et al. v. Grail, [1998] 3 S.C.R. 437; 232 N.R. 201; 115 O.A.C. 1, refd to. [para. 39].

Canadian Foundation for Children, Youth and the Law v. Canada (Attorney General), [2004] 1 S.C.R. 76; 315 N.R. 201; 183 O.A.C. 1; 2004 SCC 4, refd to. [para. 39].

Kaverit Steel and Crane Ltd. et al. v. Kone Corp. et al. (1992), 120 A.R. 346; 8 W.A.C. 346; 85 Alta. L.R.(2d) 287 (C.A.), refd to. [para. 44].

Gulf Canada Resources Ltd. v. Arochem International Ltd. et al. (1992), 11 B.C.A.C. 145; 22 W.A.C. 145; 66 B.C.L.R.(2d) 113 (C.A.), refd to. [para. 44].

Kvaerner Enviropower Inc. v. Tanar Industries Ltd. et al. (1994), 157 A.R. 363; 77 W.A.C. 363; 24 Alta. L.R.(3d) 365 (C.A.), refd to. [para. 44].

Automatic Systems Inc. v. Bracknell Corp. et al. (1994), 74 O.A.C. 111; 18 O.R.(3d) 257 (C.A.), refd to. [para. 44].

Fibreco Pulp Inc. et al. v. Star Shipping A/S et al. (2000), 257 N.R. 291 (F.C.A.), refd to. [para. 44].

Ville de La Sarre v. Gabriel Aubé Inc., [1992] R.D.J. 273 (C.A.), refd to. [para. 44].

Gariépy v. Simard, REJB 2003-45302 (C.Q.), refd to. [para. 44].

Pelletier v. Standard Life, [2000] Q.J. No. 2837 (Sup. Ct.), refd to. [para. 44].

Camionex Inc. v. Bombardier Inc., REJB 99-13575 (Sup. Ct.), refd to. [para. 47].

ASG Industries Inc. v. Superseal Corp. and United States Fidelity and Guaranty Co., [1983] 1 S.C.R. 781; 50 N.R. 300, consd. [para. 53].

Statutes Noticed:

Civil Code of Québec, S.Q. 1991, c. 64, art. 83 [para. 8]; art. 1730 [para. 7]; art. 2638 [para. 38]; art. 3098, art. 3107, art. 3111, art. 3121 [para. 21]; art. 3134 [para. 33]; art. 3135 [paras. 16, 33], art. 3136, art. 3137 [para. 33]; art. 3139 [paras. 1, 15], art. 3140 [para. 33]; art. 3148, para. 2 [paras. 1, 14]; art. 3149 [para. 25]; art. 3150 [para. 20]; art. 3151 [paras. 20, 25]; art. 3165(3), art. 3168(5) [para. 38].

Code of Civil Procedure, R.S.Q. 1977, c. C-25, art. 940.1 [para. 42].

Convention on the Choice of Court, The Hague Convention (November 25, 1965), art. 5, art. 6 [para. 23].

Convention on the Recognition and Enfor­cement of Foreign Arbitral Awards (June 10, 1958), 330 U.N.T.S. 3, generally [para. 40]; art. II(3) [para. 42].

New York Convention - see Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

UNCITRAL Model Law on International Commercial Arbitration, U.N. Doc. A/40/17 (1985), Annex I, art. 8(1) [para. 42].

Authors and Works Noticed:

Bachand, Frédéric, L'efficacité en droit québécois d'une convention d'arbitrage ou d'élection de for invoquée à l'encon­tre d'un appel en garantie (2004), 83 Can. Bar Rev. 515, pp. 52 [para. 44]; 540 to 541 [para. 43].

Carbonneau, Thomas E., The Law and Practice of Arbitration (2004), p. 340 [para. 43].

Côté, Pierre-André, Interprétation des lois, 3e éd., 1999, p. 466 [para. 39, French version].

Côté, Pierre-André, The Interpretation of Legislation in Canada (3rd Ed. 2000), p. 367 [para. 39, English version].

Emanuelli, Claude, Droit international privé québécois (2001), p. 94 [para. 21].

Glenn, H. Patrick, Droit international pri­vé, dans La réforme du Code civil, t. 3, Priorités et hypothèques, preuve et pres­cription, publicité des droits, droit inter­national privé, dispositions transitoires. Textes réunis par le Barreau du Québec et la Chambre des notaires du Québec (1993), t. 3, pp. 669 [para. 27]; 744 to 745 [para. 48]; 756 [para. 27].

Goldstein, Gérald, et Ethel Groffier, Droit international privé, t. 1, Théorie générale (1998), pp. 336 [para. 31]; 337, 339 [para. 29]; 361 [para. 21]; 363 [para. 47].

Guillemard, Sylvette, Liberté contractuelle et rattachement juridictionnel: le droit québécois face aux droits français et européen (2004), 8 E.J.C.L., en ligne: http://www.ejcl.org/82/art82-1.html [para. 23].

Jodlowski, Jerzy, Les conventions relatives à la prorogation et à la dérogation à la compétence internationale en matière civile, R.C.A.D.I., 1974 (III), 475, p. 537 [para. 23].

Prujiner, Alain, Les nouvelles règles de l'arbitrage au Québec, [1987] Rev. arb. 425, generally [para. 41].

Québec, Ministère de la Justice, Commen­taires du ministre de la Justice, t. II, Le Code civil du Québec: Un mouvement de société (1993), t. II, pp. 2002 [para. 31]; 2009 [para. 23].

Talpis, J.A., et Castel, Jean-Gabriel, Le Code Civil du Québec: Interprétation des règles du droit international privé, dans La réforme du Code civil, t. 3, Priorités et hypothèques, preuve et prescription, publicité des droits, droit international privé, dispositions transitoires. Textes réunis par le Barreau du Québec et la Chambre des notaires du Québec (1993), t. 3, pp. 809, 815 [paras. 19, 35]; 901 [para. 48]; 905, 906 [para. 29]; 908 to 909 [paras. 21, 22]; 919 to 920 [para. 22].

Talpis, J.A., with the collaboration of Kath, Shelley L., If I am from Grand-Mère, Why Am I Being Sued in Texas? Responding to Inappropriate Foreign Jurisdiction in Quebec-United States Crossborder Litigation (2001), pp. 37 [para. 30]; 38 [para. 47].

United Nations, Commission on Interna­tional Trade Law, Explanatory Note by the UNCITRAL Secretariat on the Model Law on International Commercial Arbi­tration, U.N. Doc. A/40/17 (1985), Annex I [para. 41].

van den Berg, Albert Jan, Court Decisions on the New York Convention 1958 (1996), 21 Y.B. Comm. Arb. 394, pp. 440 to 441, 457 [para. 44].

van den Berg, Albert Jan, The New York Arbitration Convention of 1958: Towards a Uniform Judicial Interpretation (1981), pp. 135 to 137 [para. 44]; 340 [para. 43].

Counsel:

François Marseille, Nicholas J. Krnjevic and David A. Johnson, for the appellant;

Pierre C. Bellavance and Gabrielle Brochu, for the respondent J.R. Normand Inc.;

No one appeared for the respondent Scierie Thomas-Louis Tremblay Inc.

Solicitors of Record:

Robinson Sheppard Shapiro, Montreal, Quebec, for the appellant;

Heenan, Blaikie, Aubut, Québec, Quebec, for the respondent J.R. Normand Inc.

This appeal was heard on February 10, 2005, by McLachlin, C.J.C., Bastarache, Binnie, LeBel, Deschamps, Fish and Char­ron, JJ., of the Supreme Court of Canada.

The judgment of the Supreme Court was delivered in both official languages on July 22, 2005, by LeBel, J.