Spar Aerospace Ltd. v. American Mobile Satellite Corp.

[2002] 4 S.C.R. 205, 2002 SCC 78 (2002)

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Spar Aerospace Ltd. v. American Mobile Satellite Corp.

Canada Supreme Court
[2002] 4 S.C.R. 205, 2002 SCC 78 (2002)

Facts

Spar Aerospace Ltd. (Spar) (plaintiff), a Quebec company, manufactured communication equipment used for a satellite constructed by America Mobile Satellite Corporation a/k/a Motient Corporation (Motient) (defendant), a Virginia company. Motient hired Viacom, Inc. (defendant), a Pennsylvania company, to conduct satellite testing. Motient representatives stayed in Quebec for over a year during the project. The satellite sustained damage after it was launched into orbit. Spar was not paid for the work performed. Spar filed a lawsuit in a Quebec court against Motient, Viacom, and other companies involved in the satellite operations, including Hughes Communications Inc. (Hughes) (defendant), a California company. Motient, Viacom, and Hughes had assets in the United States but no significant assets in Quebec. Motient and Viacom motioned to dismiss the action on the ground of forum non conveniens, arguing that either California or Virginia was the most appropriate forum. The Quebec court denied the motion. Motient and Viacom appealed.

Rule of Law

Issue

Holding and Reasoning (LeBel, J.)

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