The United States government sought to enforce a $19 million Illinois judgment and permanent injunction against the defendants, who operated a cross-border lottery telemarketing business.
The motion judge refused summary judgment, finding a triable issue on a 'new' defence of denial of a meaningful opportunity to be heard.
The motion judge also ordered an immediate damages inquiry regarding undertakings the U.S. gave when it previously obtained Mareva and Anton Piller orders that were later dissolved.
The Court of Appeal allowed the appeal in part, holding that there is no new defence to foreign judgment enforcement based on a meaningful opportunity to be heard, which is indistinguishable from natural justice.
The Court enforced the U.S. judgment but upheld the order for a damages inquiry, finding no special circumstances to relieve the U.S. of its undertakings despite the alleged illegality of the defendants' business.