The Ontario Court of Appeal upheld the Superior Court of Justice decision protecting the assets of Iran from enforcement on the basis that those assets were protected by diplomatic immunity. This case emphasizes the restrictions imposed by state sovereign, diplomatic and consular immunity on suing and collecting from foreign sovereigns.
The family members of the victims killed on Ukrainian Airlines flight PS752 that was shot down by the Islamic Republic of Iran brought a motion before the SCJ to enforce their judgment in the amount of $107 million against certain assets of Iran in Canada. While Iran did not participate in the proceeding, the Attorney General intervened and argued that the assets of Iran were protected by diplomatic immunity.
The motion judge agreed with the Attorney General on the basis that the decision to grant Iran's assets diplomatic immunity rested solely with the executive arm of government.
The Ontario Court of Appeal upheld the motion judge's decision, reiterating that the decision to assign diplomatic immunity to a foreign state's assets "continues to be determined in accordance with relevant principles of customary international law, as well as Canadian constitutional, statutory and common law". In Canada, it is solely up to the executive branch of government to determine whether and to what extent to attribute diplomatic status to any foreign state and any foreign asset.
Leave to appeal to the Supreme Court of Canada was dismissed (see 2024 Carswell Ont 7942).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
