International Law Cases.docx

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Management and Organizational Studies
Management and Organizational Studies 2276A/B
Frederick King

International Law Cases 2/27/2013 9:27:00 AM Eastern Power Limited v. Azienda Communale Energia, Ontario Court of Appeal  The appeal is a request that the decision be reversed  Deals with the contract law issue of whether or not a fax is accepted as a contract  Important factors: o Where is a contract formed when an acceptance is sent by fax? o Should the case be discontinued because Ontario is not the proper location?  Facts: o Azienda comes to Toronto, Eastern Power goes to Italy o A letter of intent is signed by Azienda and faxed to Toronto, Eastern Power signs it and faxes it back to Rome o A deal was never actually agreed upon o Eastern power sued Azienda for breach of contact for $750,000 for development cost incurred and $160 million for what they would’ve earned had there been no breach o Eastern Power moved for a default judgment – if the person sued doesn’t respond they are noted in default, this is then taken to a judge and asked for a default judgment  Azienda then brought a motion to stay the lawsuit shouldn’t take place in Ontario  Eastern Power wants compensation for loss of profits which is why they want the lawsuit in Toronto  Judge granted the motion to look at Ontario on the basis of forum non conveniens grounds (courts may refuse to take jurisdiction in one location, when there is a more appropriate forum available to the parties)  Eastern Power argued the posto-acceptance matter – that a contract is accepted where it is sent, which was out of Toronto o Azienda said the general contract rule should apply – a contract is created when and where acceptance is received, which was in Rome so the contract was formed in Rome o The judge then decided the applicable law was Italian law  Most of the evidence will come from Italy  Factual matters: o Appeal court supported Italy as the contract location because most meetings took place in Italy o Italian law doesn’t provide for loss of juridical loss  Even if Ontario was found to be the proper jurisdiction, Ontario would have to apply Italian law and Eastern Power still wouldn’t be provided compensation for lost profits (loss of juridical advantage) Rudder v. Microsoft, Ontario Superior Court of Justice  Rudder sued Microsoft in Ontario – Microsoft made a motion to stay the proceedings because Washington would be the applicable location  Facts: o Rudder represents MSN users o Plaintiffs signed up for MSN and agreed to the user agreement  Agreements states that the law to govern the contract is Washington law  Plaintiffs say they shouldn’t be bound by the contract  Judge says that the contract is fair o A court is not bound to go by the location in the contract, and the burden lies with the party that wants a different location  Contract said that if they agree without reading the entire contract, they are still bound by the contract o Rudder admitted the agreement was completely viewable with scrolling down o Judge said there was no fine print and no ambiguous language and to go against this would affect all other similar contracts in the world and change the meaning of them  Court says the terms of the member agreement including the term acceptance clause bind the users o The plaintiffs did not meet the burden or show a strong enough cause to dismiss the terms Rozsa v. Barclays Bank, Darier Hentsch, Ontario Superior Court of Justice  Facts: o Rozsa borrowed $1.5 million from Darier that was supposed
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