In Integrated Team Solutions PCH Partnership v. Mitsubishi Heavy Industries, Ltd., 2025 ONCA 297, the Ontario Court of Appeal reaffirmed the right of Ontario-based plaintiffs to pursue legal action in the province against international defendants when the alleged harm occurs locally. The case arose from a failure of emergency generators at a hospital in Kingston, prompting a lawsuit by the plaintiff, a project consortium, against multiple defendants, including foreign manufacturers, relating to the failure of the generators.
The foreign defendants attempted to prevent the case from proceeding in Ontario, contending that any conflict should be resolved in a French court. However, the Court of Appeal rejected this argument. The motion judge’s finding—that the plaintiffs had adequately pleaded negligence and that the damage occurred in Ontario—was upheld. Significantly, the defendants’ failure to rebut the presumption of jurisdiction or distinguish the role of each foreign party proved fatal to their argument.
The Court of Appeal determined that a forum selection clause favoring a French commercial court, which the defendants attempted to enforce as part of the sales contract for the generator to the co-defendant and subsequently the plaintiff, was unenforceable. The Court concluded that the appellants did not adequately present the clause as evidence or demonstrate its applicability to all parties or claims.
In sum, the decision in Mitsubishi Heavy Industries underscores the necessity of adhering to evidentiary standards when attempting to invoke foreign jurisdiction clauses, while also reinforcing Ontario’s stance on jurisdiction and forum selection issues. Additionally, the case illustrates the evidentiary challenges faced by foreign defendants aiming to evade litigation in Ontario.
At Gilbertson Davis LLP, our lawyers regularly assist individual and institutional clients navigate complex contractual and commercial disputes involving forum selection clauses, Commercial and Civil Litigation, Commercial Litigation, Contract Litigation and can aid in resolving your legal issues in a timely and cost-effective manner. Please contact Gilbertson Davis LLP to schedule a consultation with one of our lawyers.
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