Anne Kirker

In a foreign judgment recognition and enforcement appeal, the Court held that an enforcing forum need not establish a real and substantial connection between itself and either the dispute or the judgment debtor.

The only jurisdictional prerequisite is that the foreign court issuing the judgment had proper jurisdiction under the real and substantial connection framework or traditional grounds.

The Court also held that traditional presence-based jurisdiction over a corporate defendant is established where the corporation carries on business in the province and is served there.

Questions about ultimate enforceability against related corporate entities were left for later procedural stages.

The appellants, indigenous Ecuadorian villagers, obtained a multi-billion dollar judgment in Ecuador against the respondent corporation for environmental pollution.

They brought an action in Ontario to recognize and enforce the judgment against the corporation and its Canadian subsidiary.

The motion judge found that Ontario had jurisdiction but stayed the action on his own initiative, finding the corporation had no assets in Ontario and the corporate veil of the subsidiary could not be pierced.

The Court of Appeal allowed the appeal and set aside the stay, holding that the motion judge erred in granting an unrequested discretionary stay and prematurely deciding the merits of the enforcement action.

The Court dismissed the respondents' cross-appeal, confirming that a real and substantial connection between the subject matter of the litigation and Ontario is not required to establish jurisdiction for an action to enforce a foreign judgment.