Case information

Private international law — Jurisdiction of Quebec court — Personal action of patrimonial nature — Misappropriation of sums paid in performance of contractual obligation — Situs of injury and fault — For purposes of determining jurisdiction of Quebec courts, whether existing interpretation of art. 3148 C.C.Q. giving them “broad basis for jurisdiction” is consistent with constitutional requirement of “real and substantial connection” and with tenets of private international law — If not, how location of economic injury and fault of omission are to be determined — Civil Code of Québec, art. 3148(3).

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

The respondent, Beaulieu Canada Ltd., alleged that it had been the victim of a misappropriation of funds orchestrated and carried out by the applicant, Mr. Negahban, who had thereby embezzled several million dollars between 2011 and 2019 in the context of an international business relationship. Mr. Negahban sought the immediate dismissal of the action brought by Beaulieu Canada on the basis that the Quebec courts lacked jurisdiction. The first instance judge found that Quebec authorities had jurisdiction to hear the dispute by reason of: (i) the injury suffered in Quebec by Beaulieu Canada and (ii) the fault committed in Quebec by Mr. Negahban, including when he met Beaulieu Canada’s representatives at its headquarters. A majority of the Quebec Court of Appeal upheld those findings on appeal.