The applicants, executors of an estate, sought a declaration on whether paying a Dubai judgment against the deceased's former law firm would violate Canadian law.
The judgment creditor was associated with entities that had historically raised funds for the Islamic Revolutionary Guard Corps (IRGC), a listed terrorist entity.
The respondents, former law partners of the deceased, argued that the payment would not benefit a terrorist group and relied on expert evidence regarding anti-money laundering laws in Dubai and the BVI.
The court found that any payment towards the Dubai judgment would be contrary to section 83.03(b) of the Criminal Code, as there was a risk the funds could indirectly benefit a terrorist group.
