Lan Associates XVIII L.P. et al. v. Bank of Nova Scotia, [2000] O.T.C. 41 (SupCt)

• Judge: Cameron, J.
• Court: Superior Court of Justice of Ontario (Canada)
• Case Date: December 21, 1999
• Jurisdiction: Ontario
• Citations: [2000] O.T.C. 41 (SupCt)

Lan Assoc. XVIII LP v. BNS, [2000] O.T.C. 41 (SupCt)

MLB headnote and full text

Temp. Cite: [2000] O.T.C. TBEd. FE.018

Lan Associates XVIII L.P., Antonio Reale, Nella Reale, Joseph Reale, Salvina Reale and Serfina Capobianco (plaintiffs) v. Bank of Nova Scotia (defendant)

(Court File No. 98-CV-149826)

Indexed As: Lan Associates XVIII L.P. et al. v. Bank of Nova Scotia

Court of Ontario

Superior Court of Justice

Cameron, J.

January 24, 2000.

Summary:

Between 1989 and 1992 four companies borrowed over $25 million from the Bank of Nova Scotia for the development and operation of a hotel, casino and beach club in Turks and Caicos Islands (the Islands). Following a default on the loans and litigation in the Islands, the owners of the four companies sued the Bank in the Province of Ontario for damages for, inter alia, misrepresentation, breach of good faith, and breach of fiduciary duty. The Bank moved to stay the action in Ontario on the ground that the forum conveniens was the Islands.

The Ontario Superior Court allowed the Bank's motion and ordered a stay of the action in Ontario. The court stated that the action had a more real and substantial connection to the Islands than to Ontario. The court noted that the owners of the four companies did not have a real or substantial connection with Ontario. The court stated that the business and the property securing the loans was in the Islands and that the Islands was the proper law of the loan agreements.

Conflict of Laws - Topic 7284

Contracts - Jurisdiction - Forum conveniens - See paragraphs 30 to 47.

Cases Noticed:

Amchem Products Inc. et al. v. Worker's 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, refd to. [para. 30].

Guarantee Co. of North America v. Gorden Capital Corp. (1994), 18 O.R.(3d) 9 (Gen. Div.), refd to. [para. 30].

Frymer v. Brettschneider and Shechtman (1994), 72 O.A.C. 360; 19 O.R.(3d) 60 (C.A.), refd to. [para. 30].

Tolofson v. Jensen and Tolofson, [1994] 3 S.C.R. 1022; 175 N.R. 161; 77 O.A.C. 81; 51 B.C.A.C. 241; 84 W.A.C. 241, refd to. [para. 37].

ATL Industries Inc. v. Han Eol Industries Co. (1995), 36 C.P.C.(3d) 288 (Ont. Gen. Div.), refd to. [para. 41].

Arrowmaster Inc. v. Unique Forming (1993), 17 O.R.(3d) 407 (Gen. Div.), refd to. [para. 42].

Morguard Investments Ltd. et al. v. De Savoye, [1990] 3 S.C.R. 1077; 122 N.R. 81, refd to. [para. 42].

Carl-Zeiss Stiftung v. Rayner and Keeler, [1966] 2 All E.R. 536 (H.L.), refd to. [para. 48].

Angle v. Minister of National Revenue (1974), 2 N.R. 397; 47 D.L.R.(3d) 544 (S.C.C.), refd to. [para. 48].

D.S.V. Silo-Und Verwaltungsgesellschaft MBH v. Owners of Ship "Sennar", 61 N.R. 149; [1985] 2 All E.R. 104 (H.L.), refd to. [para. 48].

AGF v. Transamerica (1993), 14 O.R.(3d) 161 (Gen. Div.), refd to. [para. 48].

Doering v. Grandview (Town), [1976] S.C.R. 621; 7 N.R. 299, refd to. [para. 49].

Counsel:

Howard Wolch, for the plaintiffs (the responding party);

William G. Horton, for the defendants (the moving party).

This motion was heard on December 21, 1999 by Cameron, J., of the Ontario Superior Court who released the following decision on January 24, 2000.

Please note: The following judgment has not been edited.