Canada: Garcia V. Tahoe Resources Inc., 2015 BCSC 2045

Garcia V. Tahoe Resources Inc., 2015 BCSC 2045

In this case, the British Columbia Supreme Court declined jurisdiction in a proceeding in which the plaintiffs sought to hold a parent company responsible for the actions of its subsidiary.

Seven Guatemalans commenced an action in British Columbia against Tahoe in connection with an alleged shooting that took place at Escobal mine (a gold, silver, lead and zinc mine) in Guatemala. The plaintiffs claim they were shot at close range by security personnel while peacefully protesting outside the mine gates. The mine is owned by a Guatemalan subsidiary of Tahoe. Tahoe itself has its headquarters in Nevada, but is registered in British Columbia.

Tahoe conceded that the B.C. Court had jurisdiction simpliciter, but argued that jurisdiction should be declined on the basis that Guatemala is clearly the more appropriate forum.

The Court agreed. Among other factors, the Court considered the greater inconvenience and expense required to litigate in B.C. due to the evidence being in Guatemala and Nevada, that all of the plaintiffs resided in Guatemala, and that none of the plaintiffs speak English. The Court also found a risk of duplicative proceedings because there was a related criminal prosecution underway in Guatemala. The plaintiffs argued, relying on Choc v. Hudbay Minerals Inc.,¹ that their cause of action against Tahoe directly could not be advanced in Guatemala. Although the Court agreed that was a factor weighing in favour of accepting jurisdiction, it ultimately declined jurisdiction, noting the importance of proceeding cautiously in finding that a foreign court is incapable of providing justice to its own citizens.

Footnotes

1. In Choc v. Hudbay Minerals Inc., 2013 ONSC 1414, the Ontario Superior Court of Justice declined to strike a pleading, which alleged that a Canadian parent company was liable in negligence for failing to prevent alleged human rights abuses. See Mining in the Courts, Vol. IV.

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