ZF Foxconn Prevails in Cross-Border Supply Dispute with Stellantis

ZF Foxconn has succesfully defended its contractual rights in a complex cross-border supply dispute with Stellantis before the Toronto Commercial List. The dispute arose after Stellantis failed to pay more than US$28.82 Million (C$40 Million) owed to ZF Foxconn for suspension modules supplied for the production of Chrysler minivans and Dodge Chargers.

ZF Foxconn had advised that shipments would be suspended unless the outstanding amounts were paid. Stellantis subsequently obtained an ex parte interim injunction preventing the suspension of shipments, citing potential disruption to its Windsor production facility.

The Court ultimately vacated the injunction, accepting that the parties' agreement contained a clear and enforceable exclusive venue clause requiring disputes to be resolved in Michigan, United States. The decision reinforces the importance of carefully negotiated jurisdiction clauses in cross-border commercial agreements and provides a significant reminder that contractual forum-selection provisions can carry substantial weight in urgent disputes.

Advisory Team:

MCMILLAN LLP

W. Brad Hanna

Reuben Rothstein

Rachel Wong