In Alberta & Orient Glycol Co., Ltd. v. Factory Mutual Insurance Co. , Alberta & Orient (A&O) filed suit against Factory Mutual alleging breach of contract.
A&O claimed that its chemical reactor in Alberta, Canada, was covered by an all-risk insurance policy and that Factory Mutual had wrongfully denied coverage for A&O's losses. Factory Mutual and other defendants sought to dismiss the case claiming that it had been initiated in the wrong forum and the court lacked "jurisdiction."
When the New York County Supreme Court granted Factory Mutual's request, A&O appealed.
The Appellate Division, First Department, concluded that jurisdiction over the various defendants -- Great Lakes Reinsurance Co., Commonwealth Insurance Co., and ACE INA Insurance -- was lacking because they were "not engaged in such a continuous and systematic course of doing business" that would trigger New York's power over them. (Those companies lacked sufficient contacts with the state.) In addition, New York was an inconvenient forum -- or "forum non conveniens" -- since A&O was based in Canada (where the loss occurred), many of the witnesses lived and worked in that country, and a related case was pending in Canadian courts.
Was that a loonie outcome?
To download a copy of the Appellate Division's decision, please use this link: Alberta & Orient Glycol Co., Ltd. v. Factory Mutual Insurance Co.