Michael D. Magonet

The applicant sought recognition and enforcement in Ontario of a Québec civil judgment arising from a loan of $30,000 that remained unpaid.

The respondent argued that she had not been properly served in the Québec proceedings.

The court reviewed the common law principles governing recognition of interprovincial judgments, noting that the Reciprocal Enforcement of Judgments Act does not apply to Québec judgments.

Applying the test for enforcement of foreign judgments, the court found that the Québec court had jurisdiction, the judgment was obtained according to the rules of that court, and the principles of natural justice were respected.

The Ontario court granted judgment enforcing the Québec judgment in the amount awarded.

The appellant, an unauthorized sub-sub-contracted carrier, sought payment from the respondent consignee for transporting goods, relying on section 2 of the Bills of Lading Act.

The respondent had already paid its contracted transportation arranger, unaware of the unauthorized subcontracting chain.

The Divisional Court dismissed the appeal, holding that the appellant disentitled itself from relying on the Act by participating in the unauthorized subcontracting and concealing it from the respondent.