Actions were brought in Ontario against a number of parties, including Club Resorts Ltd., a company incorporated in the Cayman Islands, that managed the two hotels where the accidents occurred.
Lebel J. observed that the case concerned the elaboration of the real and substantial connection test as an appropriate common law conflicts rule for the assumption of jurisdiction.
In determining whether a court can assume jurisdiction over a certain claim, the preferred approach in Canada has been to rely on a set of specific factors which are given presumptive effect, as opposed to a regime based on an exercise of almost pure and individualized judicial discretion.
Jurisdiction must be established primarily on the basis of objective factors that connect the legal situation or the subject matter of the litigation with the forum.
[3] Van Breda was immediately applied to two other judgments handed down by the SCC on the same day, which were concerned with libel: In both of these cases, the Ontario court was determined to be the most appropriate forum as well.
[7] Van Breda also confirms that foreign companies that reside, conduct business or enter into agreements in a Canadian province will be subject to its jurisdiction, unless they can rebut the presumption of a real and substantial connection to the Canadian jurisdiction, or include exclusive forum or arbitration clauses in their contracts.