From Morguard To Club Resorts: The Evolution Of The Real And Substantial Connection Test

Introduction ¹

Since the Supreme Court of Canada's decision in Morguard Investments Ltd. v. De Savoye,² the test for when a court can assume jurisdiction over an out‐of‐province defendant has been whether there is a "real and substantial connection" between the forum and the subject matter of the litigation. Yet post‐Morguard, the courts have consistently struggled with how to determine when a real and substantial connection exists.

The Supreme Court of Canada's decision in Club Resorts Ltd. v. Van Breda³ is but the latest attempt at articulating a common law test for the real and substantial connection requirement. The simplicity of the new Club Resorts framework, however, is a welcome change from past formulations, which were cumbersome in practice and did not provide sufficient clarity on when a court can assume jurisdiction over a claim.