Server Location Not Definitive In Determining Jurisdiction Over Foreign Defendant

Canadian courts will generally assume jurisdiction over proceedings that have a real and substantial connection to them. This broad test for taking jurisdiction understandably sets off alarms for businesses that transact business over the Internet and across borders. For many of these businesses, there is a concern that they may be subject to lawsuits in any country which their customers use their service from.

In deciding whether or not it has jurisdiction over extra-territorial defendants, a Canadian court will consider whether a sufficient connection exists between the wrongful conduct and the jurisdiction.¹ Companies seeking to avoid subjecting themselves to Canadian jurisdiction should note that the analysis is not limited to the defendant's physical presence in the jurisdiction, but also must consider the connection between the alleged wrongful conduct and the jurisdiction. With respect to online conduct, Canadian courts have found that relevant