The appellant sought recognition in Quebec of an English judgment ordering the Republic of Iraq to pay costs arising from litigation over aircraft seized during the invasion of Kuwait.
Iraq claimed state immunity under the State Immunity Act.
The Supreme Court of Canada held that while the Act applies to applications for recognition of foreign judgments, Iraq's conduct in controlling the defence of its state-owned airline in the English commercial litigation fell within the commercial activity exception.
The Court allowed the appeal and permitted the application for recognition to proceed.
