Jurisdiction

How BC law treats it

Jurisdiction has two dimensions. Subject matter jurisdiction asks which court or tribunal can decide this kind of claim. Territorial jurisdiction asks whether a BC court can hear a case involving parties or events outside the province. On subject matter, the BC Supreme Court is a superior court of inherent general jurisdiction, but many matters are assigned elsewhere. The Civil Resolution Tribunal decides most small claims up to $5,000 under the Civil Resolution Tribunal Act, as well as strata disputes. The Provincial Court hears small claims up to $35,000 under the Small Claims Act. The Federal Court decides many federal matters and shares jurisdiction with the provincial courts over intellectual property claims. Appeals from the BC Supreme Court go to the Court of Appeal for British Columbia. On territorial jurisdiction, the Court Jurisdiction and Proceedings Transfer Act sets the test. A BC court has jurisdiction where the defendant is ordinarily resident in BC, submits to the court, agrees to BC jurisdiction, or where there is a real and substantial connection between BC and the facts (s. 3), and s. 10 lists presumed connections, such as a claim about contractual obligations that were to be performed in BC to a substantial extent or a contract expressly governed by BC law. Even with jurisdiction, the court may decline it if another forum is clearly more appropriate (s. 11; Club Resorts Ltd v Van Breda, 2012 SCC 17). Contracts often include a forum selection clause, which courts usually enforce between businesses, but less readily against consumers (Douez v Facebook, Inc).

What it means for your business

Starting a claim in the wrong forum wastes time and money and can risk missing a limitation period. For businesses dealing across borders, a clear jurisdiction and governing law clause decides whether a dispute is fought in Vancouver or in another province or country. Knowing the CRT and Small Claims limits also helps a business pick the cheapest and fastest route for smaller unpaid invoices. Example: A Vancouver software company signs a services contract with an Ontario client that names the BC courts as the exclusive forum. When the client refuses to pay, the company sues in the BC Supreme Court, and the clause defeats the client's attempt to move the case to Ontario.

Risks and common mistakes

Filing a claim over $35,000 in Small Claims Court, or a claim over $5,000 in the CRT, without considering the limits. Leaving out a jurisdiction clause in contracts with out of province or international customers. Assuming a contract signed in BC guarantees that a BC court will hear every related dispute. Attorning to a foreign court by defending on the merits before challenging jurisdiction. Relying on a forum clause in standard consumer terms that a court may refuse to enforce.