Supreme Court Of Canada Simplifies The Assumed Jurisdiction Test

Today the Supreme Court of Canada released its much anticipated decision in Club Resorts Ltd. v. Van Breda, 2012 SCC 17 ("Club Resorts"), and provided a new common law test for determining when a court can assume jurisdiction over an out-of-province defendant. Here is a brief summary of the new test; a more detailed analysis will follow.

A New Test to Determine a "Real and Substantial Connection"

Under the common law doctrine of jurisdiction simpliciter, a court can assume jurisdiction over an out-of-province defendant if the defendant or the subject matter of the plaintiff's claim has a "real and substantial connection" to the province. However, over the years courts in Canada have struggled with various analytical frameworks for determining when the "real and substantial connection" requirement is met.