This decision, made in the early stages of a proposed class action, demonstrates the willingness of the Court to take jurisdiction even in cases where the alleged activities of mining companies appear remote from the alleged harm suffered by consumers.
Although this proposed class action is indexed as Fairhurst v. Anglo American PLC, the action is only continuing against defendants other than Anglo American PLC, including De Beers Canada Inc. (De Beers Canada) and a number of its international affiliates. Fairhurst alleges that the defendants conspired with each other to drive up the price of gem grade diamonds sold in Canada and British Columbia, causing harm to consumers.
In this preliminary motion, the defendants sought to strike Fairhurst's claim on jurisdictional grounds, arguing that there was not a real and substantial connection between the defendants and British Columbia. The defendants asserted that they did not carry on business in British Columbia and that they were not involved in the sale of gem grade diamonds. Rather, their involvement was higher in the "diamond pipeline" as sellers of rough diamonds to sightholders. The only defendant with operations in British Columbia is De Beers Canada, a mining company that only began producing diamonds after the proposed class action was commenced.
The Court reviewed the Court Jurisdiction and Proceedings Transfer Act and the common law and confirmed that a tortious conspiracy, of the sort alleged by Fairhurst, will be taken to have occurred where the damage was suffered regardless of where the elements of wrongful conduct took place. Fairhurst had pleaded sufficient jurisdictional facts to support a finding of territorial competence, including that the defendants' diamonds were sold in British Columbia (a proposition that the defendants did not rebut), and that harm had arisen in British Columbia as a result of the defendants' alleged wrongdoing. The motion to strike the claim was accordingly dismissed.
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