Courts Have Power To Grant Injunctions Against Parties Outside Their Jurisdiction
Late last spring, a unanimous Supreme Court of Canada affirmed that the provinces' Superior Courts have the jurisdiction to issue injunctions with purely extraterritorial effects.
In Impulsora Turistica de Occidente, S.A. de C.V. v. Transat Tours Canada Inc.,1 Transat Tours Canada Inc. sought an injunction and other relief in the Superior Court of Quebec against Impulsora Turistica de Occidente S.A. de C.V., three other Mexican corporations and a Canadian travel company.
Transat alleged that one of the Mexican companies, Tescor, S.A. de C.V. breached an agreement that granted Transat an exclusive right to lease rooms in a Puerto Vallarta hotel for 3 years. The contract included a forum selection clause in favour of the Quebec courts.
Transat alleged that the three remaining Mexican companies were party to the breach by agreeing to make blocks of rooms available to another Canadian company, MyTravel Canada Holidays Inc.
MyTravel, along with the Mexican defendants, contested Transat's injunction, arguing for...
