Forum selection clauses are frequently used in commercial
contracts, especially in cases where the parties to the contracts
are based in different jurisdictions. These clauses allow the
parties to choose which jurisdiction their disputes will be
resolved in. However, a recent decision of the Saskatchewan Court
of Queen's Bench cautions about the use of forum selection
clauses and their enforceability. This decision emphasizes the
importance of ensuring that a forum selection clause is drafted
clearly and properly serves the intention of the party wishing to
include the clause.
In Yara Belle Plaine Inc v Ingersoll-Rand Company, 2014
SKQB 254, the plaintiff company, Yara Belle Plaine Inc
("Yara") owned and operated a nitrogen fertilizer plant,
in Belle Plaine, Saskatchewan. Beginning in 2004, Yara entered into
a series of contracts with the defendant, Ingersoll-Rand Company
("Ingersoll"), based out of the United States, for the
disassembly, repair and reassembly of two
