Background: Scott Leaf sought to certify a class action against The Hershey Company and Hershey Canada Inc., alleging negligent misrepresentation. Leaf claimed that the companies falsely represented their opposition to child labor and slavery in their supply chain, misleading consumers into purchasing their products. The Hershey Company, based in Pennsylvania, is the parent company of Hershey Canada. The company contested the jurisdiction of British Columbia courts to hear the case.

Legal Arguments/Issues: The primary legal issue was whether the British Columbia courts had territorial competence to hear the case under the Court Jurisdiction and Proceedings Transfer Act (CJPTA). The Hershey Company argued that the alleged misrepresentation did not occur in British Columbia and that it did not conduct business in the province. Leaf relied on affidavits claiming he saw misleading advertisements and product packaging in British Columbia.

Court's Ruling: The Court of Appeal for British Columbia ruled in favor of The Hershey Company, finding that the affidavits provided by Leaf did not establish sufficient material facts to show that the alleged misrepresentations occurred in British Columbia. The court concluded that there was no "real and substantial connection" between the facts of the case and the province, thus lacking territorial competence. The court set aside the lower court's decision to deny The Hershey Company's application to dismiss or stay the proceeding.

Costs/Damages Awarded: The court allowed the appeal, but the total amount of costs awarded in favor of The Hershey Company was not specified in the provided document.