JLPM v. Ferrovial Services Canada Limited
JLPM
Law Firm / Organization
Not Specified
Lawyer(s)

B. Jackson

Dwight Anthony Jr.
Law Firm / Organization
Not Specified
Lawyer(s)

B. Jackson

Ferrovial Services Canada Limited
Law Firm / Organization
Not Specified
Lawyer(s)

K. Santini

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:

  1. 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.
  2. 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.
  3. Is the FSC valid, clear, and enforceable?

    • The court affirmed the FSC’s clarity, concluding it was valid and enforceable.
  4. 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.

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.

Superior Court of Justice - Ontario
CV-22-87
Civil litigation
Plaintiff