Several residents of Ontario, Canada took a trip to Duluth, Minnesota. The party took a car belonging to Emma Saari (defendant) that had been registered, insured, and garaged in Ontario. While in Minnesota, they got into an automobile accident in which Anne Milkovich (plaintiff) was injured. Milkovich was hospitalized in Minnesota for approximately six weeks before returning to Ontario. Milkovich initially filed suit against Saari and another driver of Saari’s car (defendant) in Ontario. She later initiated a suit against the same defendants in Minnesota. A guest statute under Ontario law required proof of gross negligence in order to establish a host-driver’s liability toward a guest-passenger. Minnesota law did not contain a guest statute, thereby allowing liability to be established on the basis of ordinary negligence. Defendants moved to dismiss the complaint on the grounds that it did not allege gross negligence as required by Ontario law. The court denied their motion. They appealed.