Larry Lowenstein

The plaintiffs moved to add Chevron Canada Capital Company (CCCC) as a party defendant to their action seeking to enforce an Ecuadorian judgment against Chevron Corporation.

The court dismissed the motion, finding that the proposed amendment was not legally tenable and disclosed no cause of action against CCCC, as the court had previously ruled that Chevron Canada's corporate veil could not be pierced.

Furthermore, the court found no basis for jurisdiction over CCCC, a Nova Scotia company with no assets or operations in Ontario, and noted that Rule 17.02(o) regarding necessary parties had been repealed.

The plaintiffs sought to enforce a US$9.5 billion Ecuadorian judgment against Chevron Corporation and its seventh-level indirect subsidiary, Chevron Canada Limited.

The defendants moved for summary judgment to dismiss the claim against Chevron Canada, arguing it was a separate legal entity not liable for the judgment.

The plaintiffs argued Chevron Canada's assets were exigible under the Execution Act or that the corporate veil should be pierced.

The court granted summary judgment dismissing the claim against Chevron Canada, finding the Execution Act does not override corporate separateness and there was no basis to pierce the corporate veil absent allegations of wrongdoing by the subsidiary.

The plaintiffs also moved to strike Chevron's statement of defence.

The court struck defences relating to retroactive legislation and international law, but permitted defences alleging the Ecuadorian judgment was procured by fraud, bribery, and a denial of natural justice to proceed to trial.

In a securities class action arising from the collapse of a forestry company, the plaintiffs sought approximately $2.6 million in costs following certification and leave motions brought under the Class Proceedings Act, 1992 and the Securities Act.

Several defendants argued that costs should not be awarded because the plaintiffs had already recovered legal expenses through settlements with other defendants and because the claimed costs were excessive.

The court held that the plaintiffs were largely successful but not entirely successful due to an unresolved assignment issue affecting certain class members.

The court also ruled that disbursements could not be recovered again because they had already been indemnified through settlements.

Exercising its discretion, the court ordered a hybrid costs award: part payable immediately and part payable in the cause.

An Ontario resident brought a proposed securities class action against a U.K. issuer alleging secondary market misrepresentation under Part XXIII.1 of the Securities Act following the Deepwater Horizon oil spill.

The defendant moved to stay the action in part, arguing Ontario lacked jurisdiction over claims of investors who purchased securities on foreign exchanges and that the matter should proceed in U.S. or U.K. courts.

The court held that the statutory cause of action under s. 138.3 constitutes a statutory tort presumptively connected to Ontario where an Ontario investor is deemed to have relied on the misrepresentation.

The legislation did not restrict claims to purchases on Ontario exchanges, and the defendant failed to rebut the presumptive connecting factor.

The court further found the defendant did not establish that foreign courts were clearly more appropriate forums.

The plaintiff class, comprising salaried and executive retirees of General Motors of Canada Limited (GMCL), brought a class action alleging that GMCL breached its contracts by reducing post-retirement health care and life insurance benefits.

On motions for partial summary judgment, the court held that the reservation of rights clauses in the benefit documents for salaried employees were ambiguous and did not clearly permit GMCL to reduce benefits after the employees had retired.

Applying principles of contractual interpretation, including contra proferentem and the duty of good faith, the court found GMCL breached its contracts with the salaried retirees, including new hires and early retirees.

However, the court found that the reservation of rights clause for executive retirees was clear and unambiguous, allowing GMCL to reduce their benefits.

The plaintiffs sought court approval of a settlement agreement resolving complex litigation and related bankruptcy proceedings arising from the collapse of Lehman Brothers.

The dispute concerned ownership and recovery of investment fund assets held by the prime broker at the time of its insolvency, including securities subject to re-hypothecation and claims advanced in multiple jurisdictions.

The court considered the fairness and reasonableness of the settlement, including its impact on investors and the risks and delays associated with continued litigation and cross-border enforcement.

Relying on principles reflected in the Bankruptcy and Insolvency Act and the court’s jurisdiction under the Courts of Justice Act, the court concluded that the compromise was fair and reasonable.

The court approved the settlement and issued vesting orders in relation to assets conveyed under the agreement.