Mobile Mini Incorporated v. Centreline Equipment Rentals Limited

Mobile Mini Incorporated v. Centreline Equipment Rentals Limited

Forum selection clauses are important and generally enforceable, but when exercising the discretionary power to stay under s.106 the court must consider the totality of the circumstances; where a defendant delays unreasonably and takes substantive steps in the Ontario proceedings such that moving the case at the eve...

Source-derived case information.

Citation
C40736
Parties
Plaintiff (defendant by Counterclaim/appellant in Appeal): Mobile Mini Incorporated; Defendant (plaintiff by Counterclaim/respondent in Appeal): Centreline Equipment Rentals Limited
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
20 July 2004
Procedural Posture
Civil Appeal From Motion to Stay Proceedings Under Courts of Justice Act S.106 / Appeal From Motions Judge's Stay Order Issued Pre Trial (on Eve of Trial)
Outcome
Appeal allowed; motions judge's order staying the Ontario proceedings set aside; proceedings to continue in Ontario.
Legal Topics
Forum Selection Clause, Stay of Proceedings, Enforcement of Contractual Forum Clauses, Delay and Waiver
Source Language
english
Civil Procedure Private International Law Contract Law Forum Selection Clause Stay of Proceedings Enforcement of Contractual Forum Clauses Delay and Waiver

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Parties

Mobile Mini Incorporated

Plaintiff (defendant by Counterclaim/appellant in Appeal)

Centreline Equipment Rentals Limited

Defendant (plaintiff by Counterclaim/respondent in Appeal)

Procedural Posture

Civil Appeal From Motion to Stay Proceedings Under Courts of Justice Act S.106 / Appeal From Motions Judge's Stay Order Issued Pre Trial (on Eve of Trial)

Legal Issues

  1. 1 Whether an Ontario court should stay proceedings in favour of a forum selected by contract (Arizona)
  2. 2 Whether the motions judge erred by treating the forum selection clause as determinative rather than a dominant factor in the s.106 discretion
  3. 3 Whether the defendant's delay and conduct in the Ontario proceedings justified refusing to enforce the forum selection clause

Ratio Decidendi

Forum selection clauses are important and generally enforceable, but when exercising the discretionary power to stay under s.106 the court must consider the totality of the circumstances; where a defendant delays unreasonably and takes substantive steps in the Ontario proceedings such that moving the case at the eve of trial would be unjust and prejudicial, the court may refuse to enforce the forum clause and allow the Ontario proceedings to continue.

Court Disposition

Appeal allowed; motions judge's order staying the Ontario proceedings set aside; proceedings to continue in Ontario.

Orders

  • Order of the motions judge staying the Ontario proceedings set aside
  • Change place of trial from Toronto, Ontario to Windsor, Ontario