Douglas Gordon Garbig

The plaintiffs sought to enforce a California judgment of approximately (US)$17 million against the defendant Jay Chiang and sought a declaration that the debt survives his bankruptcy discharge under s. 178(1)(d) of the BIA.

The plaintiffs also brought a second action alleging that Jay Chiang and numerous family members engaged in fraudulent conveyances and a conspiracy to hide assets and frustrate collection efforts.

The court enforced the California judgment in the amount of (US)$9,678,832 but declined to declare that the debt survives bankruptcy, finding no fiduciary duty was owed to the plaintiffs.

The court found Jay Chiang liable for fraudulent conveyances and conspiracy, but dismissed the claims against most of the other family members, finding they were unwitting conduits used by Jay Chiang.

The defendants moved to dismiss or permanently stay an Ontario action on the basis that the court lacked jurisdiction and that Germany was the appropriate forum.

The dispute arose from agreements relating to the manufacture of automotive components and included forum selection clauses designating Germany as the place of jurisdiction and German law as governing law.

The court held that the plaintiffs failed to establish jurisdiction simpliciter because no real and substantial connection to Ontario was demonstrated.

The court further found that the plaintiffs failed to show strong cause to depart from the contractual forum selection clauses.

Applying forum non conveniens principles, the court concluded that Germany was the more appropriate forum.