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ARTICLE · 10 JUNE 2014

This Week At The SCC (06/06/2014)

McCarthy Tétrault
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Pre-emptive declaratory relief in one jurisdiction may not be effective to prevent subsequent litigation elsewhere.

CanadaLitigation, Mediation & Arbitration
Martin Boodman
Martin Boodman
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The Supreme Court of Canada denied leave to appeal this week from one appeal of interest to Canadian businesses and professions.

The decision in Amtim Capital Inc. v. Appliance Recycling Centers of America  (2014 ONCA 62) indicates that pre-emptive declaratory relief in one jurisdiction may not be effective to prevent subsequent litigation elsewhere.

Appliance Recycling Centers of America ("ARCA"), a Minnesota company, was involved in a contract dispute with Amtim. ARCA instituted proceedings in Minnesota for a declaration that it owed nothing to Amtim. Amtim then began proceedings in Ontario claiming amounts owed under the contract. While Amtim unsuccessfully challenged the jurisdiction of the Minnesota courts, it did not defend the action and ACRA obtained a default judgment.

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