Background:
- Parties: JLPM (a sole proprietorship owned by Dwight Anthony Jr.) entered a subcontract with Ferrovial Services Canada Limited (a large corporation).
- Contract: In 2019, JLPM agreed to maintain rest areas in Ontario under a seven-year subcontract. Ferrovial terminated the contract in 2021.
- Forum Selection Clause (FSC): The contract designated Travis County, Texas, as the venue for disputes. JLPM challenged this clause after initiating proceedings in Ontario.
Legal Issues:
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Is the FSC operative post-termination?
- The FSC survives termination unless explicitly excluded. The court upheld its applicability, referencing precedent indicating such clauses remain binding unless explicitly negated.
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Is the FSC unconscionable?
- JLPM's Argument: Inequality of bargaining power existed between a small business and a global corporation. The clause was part of a standard form contract.
- Court's Finding: No unconscionability was found. JLPM had prior business experience, time to seek legal advice, and some negotiation over terms.
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Is the FSC valid, clear, and enforceable?
- The court affirmed the FSC’s clarity, concluding it was valid and enforceable.
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Is there "strong cause" to override the FSC?
- Factors analyzed:
- Location of Evidence: Neutral due to remote trial capabilities.
- Governing Law: Ontario law applied despite the FSC’s venue clause.
- Connections: Both parties had significant ties to Ontario, outweighing Ferrovial’s Texas-based directors.
- Procedural Advantage: No evidence that Ferrovial sought undue advantage.
- Prejudice to JLPM: No definitive evidence of enforceability issues for a Texas judgment.
- The court concluded that Ontario was the appropriate forum based on these factors.
- Factors analyzed:
Outcome: The motion to stay or dismiss the action in Ontario was denied. The Ontario court retained jurisdiction, deeming it the more convenient forum. No monetary award specified.