Chevron Corp. V. Yaiguaje, 2015 SCC 42
In this important decision, the Supreme Court of Canada confirmed that in recognition and enforcement proceedings, the plaintiff does not need to prove a "real and substantial connection" between the province and the defendant or the subject matter in order to establish jurisdiction simpliciter. The only pre-requisite is that the foreign court properly assumed jurisdiction.
The case involves an attempt to enforce an Ecuadorian judgment in Ontario against Chevron and Chevron Canada. Although Chevron Canada was a wholly-owned subsidiary of Chevron, it was not a party to the Ecuadorian case.
In reaching its decision, the Court noted that the purpose of a recognition and enforcement proceeding is not to evaluate the underlying claim, but to facilitate the enforcement of an already-adjudicated obligation. Such a purpose does not require proof of a real and substantial connection to the enforcing jurisdiction. Nor is it necessary that the defendant have assets in the province at the time of the proceeding. In the era of globalization, assets move quickly between jurisdictions and judgment creditors are entitled to enforce their judgments where they wish.
With respect to Chevron Canada — a stranger to the original foreign judgment — the Court confirmed that Ontario had jurisdiction, but noted that a finding of jurisdiction only affords the opportunity to recognize and enforce the judgment. The Court specifically took no position on whether Chevron Canada could properly be considered a judgment debtor.
For more on this decision and it potential impacts, see McCarthy Tétrault LLP's Canadian Appeals Monitor blog post entitled "Chevron Corp v. Yaiguaje: SCC Decision Highlights Increased Litigation Risk for Canadian Companies for Misdeeds of their Foreign Affiliates."
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