Professor Farrokh Zandi

Victims of terrorism sought enforcement in Ontario of U.S. judgments against a foreign state and its agencies following recognition of those judgments under the Justice for Victims of Terrorism Act.

The court considered the interaction between the JVTA, the State Immunity Act, and Ontario enforcement procedures.

It held that non‑diplomatic bank accounts and real property beneficially owned by the foreign state in Canada were exigible assets available to satisfy the recognized judgment.

The court ordered financial institutions to pay funds to the sheriff for distribution under provincial execution legislation and directed enforcement against two properties found to be beneficially owned by the foreign state.

The moving parties sought a without-notice Mareva injunction freezing assets in Ontario allegedly owned or controlled by a foreign state and its intelligence ministry.

The motion arose from efforts to enforce a final United States judgment awarding damages for a fatal terrorist bombing.

The court considered the requirements for a Mareva injunction, including full and frank disclosure, a strong prima facie case for recognition of the foreign judgment, evidence of assets in the jurisdiction, and a real risk of dissipation.

Evidence included expert opinion and materials suggesting certain Ontario properties were owned or controlled by entities acting as alter egos of the foreign state.

The court granted an interim interlocutory injunction restraining disposition of the identified properties pending further proceedings.