Ontario’s Top Court Confirms Importance of Jurisdiction Agreements

In Crown Resources Corp SA v National Iranian Oil Corp [2006] OJ No 3345 (CA), decided August 22, 2006, the Court of Appeal for Ontario overturned a lower court decision which had not given effect to a jurisdiction clause in favour of litigation in Iran.  The Court of Appeal confirmed that a "strong cause" had to be shown before the court could disregard such a clause, and that no such cause had been made out in this case.   Throughout its reasons, the court stresses the importance of upholding jurisdiction agreements.  The case also illustrates how related tort claims can be found to fall within the scope of the agreement.  The decision is available here.