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ARTICLE · 18 JULY 2017

SCC Decision Calls Into Question Enforceability Of Choice Of Forum Clauses In Consumer Contracts

Blake, Cassels & Graydon LLP
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In June 2017, the SCC released its decision in Douez v. Facebook. The case concerned the application of a choice of forum clause included in Facebook's terms of use to stay a class action...

CanadaLitigation, Mediation & Arbitration
Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
Vladimir Shatiryan
Vladimir Shatiryan
Paul Belanger
Paul Belanger
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In June 2017, the Supreme Court of Canada (SCC) released its decision in Douez v. Facebook (Douez). The case concerned the application of a choice of forum clause included in Facebook's terms of use to stay a class action proceeding brought in British Columbia. The SCC issued a three-one-three split decision, with Justices Karakatsanis, Wagner and Gascon holding that the choice of forum clause was not enforceable and Justice Abella agreeing in the result but not in the reasons.. For a detailed discussion of this case, please see our June 2017 Blakes Bulletin: Supreme Court of Canada Allows British Columbians to Pursue Privacy Class Action Against Facebook.

This decision is noteworthy for the financial services sector as it calls into question the enforceability of choice of forum clauses in consumer contracts.

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