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ARTICLE · 27 JANUARY 2014

Case Note: Bombardier Inc v AS Estonian Air, 2014 ONCA 41

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Bombardier alleged that the Republic of Estonia induced Estonian Air to breach its contract with Bombardier, intentionally interfering with its economic relations.

CanadaCorporate/Commercial Law
Louis Frapporti
Louis Frapporti
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Facts: Bombardier alleged that the Republic of Estonia induced Estonian Air to breach its contract with Bombardier, intentionally interfering with its economic relations. Bombardier therefore sought to bring the Republic before the courts of Ontario by invoking the "commercial activity" exception as described in s. 5 of the Federal State Immunity Act, RSC 1985, c S-18 (the "Act").

The commercial activity exception provides that a foreign state is not immune from the jurisdiction of Canadian courts "in any proceedings that relate to any commercial activity of the foreign state." "Commercial activity" is defined as "any particular transaction, act or conduct or any regular course of conduct that by reason of its nature is of a commercial character."

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