Court rejects Schreiber's lawsuit against ex-PM

An Ontario court on Thursday dismissed Karlheinz Schreiber's $300,000 lawsuit against Brian Mulroney, saying it has no jurisdiction over the matter.

Schreiber filed the lawsuit against the formerProgressive Conservative prime ministerin March to recoup $300,000, plus interest, that he says he gave Mulroney when he left office.

However, in the 20-page decision, Justice Maurice Cullity of the Ontario Superior Court rejected Schreiber's argument the matter should be heard in the province.

"There are no significant connections between Mr. Mulroney and Ontario," Cullity wrote, noting that at the time, Mulroney lived and worked in Montreal, saying any services would have been performed from Quebec.

"Overall, I do not believe Mr. Schreiber has succeeded in presenting a good arguable case that there exists a real and substantial connection between Ontario and the subject matter of this action."

Schreiber alleges he paid Mulroney to lobby on his behalf when he left office,and the former prime minister didn't do any work.

Schreiber's statement of claim alleges he repeatedly tried to collect the money from Mulroney, who, he says, refused to pay him back.

Ken Prehogan, a lawyer for Mulroney, refused comment on Thursdays' court decision, noting Schreiber still has a right of appeal. "To that limited extent, the matter is still before the courts."

Richard Anka, lawyerfor Schreiber, was not immediately available.

Mulroney denies Schreiber claims

Schreiber recently told a House of Commons ethics committeethat he gave Mulroney the cash-filled envelopes during meetings in hotel rooms in Montreal and New York in 1993 and 1994.

Mulroney, who appeared once before the committee, rejected Schreiber's allegations, saying he promoted Schreiber's armoured tank company Thyssen during visits to China, Russia, Europe and the U.S.

Mulroney acknowledges taking the cash payments, which he said totalled $225,000, but that he used only a small portion of it for travel expenses.

Schreiber is out on bail while trying to launch a last-ditch appeal to the Supreme Court of Canada to avoid extradition to Germany to face charges of bribery, fraud and tax evasion.