GreCon Dimter Inc. v. J.R. Normand Inc.

[2005] 2 S.C.R. 401, 2005 SCC 46 (2005)

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GreCon Dimter Inc. v. J.R. Normand Inc.

Canada Supreme Court
[2005] 2 S.C.R. 401, 2005 SCC 46 (2005)

Facts

J.R. Normand Inc. (Normand) (plaintiff), a Quebec-based seller of industrial woodworking materials, entered into a contract to supply and deliver woodworking equipment to Scierie Thomas-Louis Tremblay Inc. (Tremblay). Normand entered into a second contract with GreCon Dimter Inc. (GreCon) (defendant), a German equipment manufacturer, to acquire the equipment necessary to fulfill Tremblay’s order. The second contract with GreCon contained a clear and precise forum-selection clause that designated German courts as the forum to litigate any disputes arising from the second contract. GreCon failed to deliver the equipment to Normand on time, and, consequently, Normand failed to fulfill Tremblay’s order. Tremblay filed suit against Normand in Quebec. Normand commenced a warranty action against GreCon in Quebec, incidental to Tremblay’s main action for damages, seeking indemnification from GreCon in the event that Normand was found liable to Tremblay in the main action. Relying on the German forum-selection clause, GreCon motioned to dismiss Normand’s warranty action. The trial court denied the motion. GreCon appealed.

Rule of Law

Issue

Holding and Reasoning (LeBel, J.)

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