Posts Tagged 2018 ONCA 472
Chevron /Ecuador: Ontario Court of Appeal emphasises third parties in piercing the corporate veil issues.
Update 5 April 2019. The Supreme Court yesterday refused leave to appeal hence the Court of Appeal’s judgment now stands firmly.
In Chevron Corp v Yaiguaje, the Canadian Supreme Court as I reported at the time confirmed the country’s flexible approach to the jurisdictional stage of recognition and enforcement actions. Following that ruling both parties files for summary judgment, evidently advocating a different outcome.
The Ontario Court of Appeal have now held in 2018 ONCA 472 Yaiguaje v. Chevron Corporation that there are stringent requirements for piercing the corporate veil (i.e. by execution on Chevron Canada’s shares and assets to satisfy the Ecuadorian judgment) and that these are not met in casu.
Of particular note is Hourigan JA’s argument at 61 that ‘the appellants’ proposed interpretation of the [Canadian Corporation’s] Act would also have a significant policy impact on how corporations carry on business in Canada. Corporations have stakeholders. Creditors, shareholders, and employees, among others, rely on the corporate separateness doctrine that is long-established in our jurisprudence and that is a deliberate policy choice made in the [Act]. Those stakeholders have a reasonable expectation that when they do business with a Canadian corporation, they need only consider the liabilities of that corporation and not the liabilities of some related corporation.’ (emphasis added by me, GAVC)
Blake, Cassels and Graydon have further review here. Note that the issue is one of a specific technical nature: it only relates to veil piercing once the recognition and enforcement of a foreign ruling is sought.
(Handbook of) EU Private International Law, 2nd ed. 2016, Chapter 8.
2018 ONCA 472, Amazon, assets, Canada, Chevron, Chevron Corp v Yaiguaje (, Chevron Ecuador, Chevron Texaco, Corporate social responsibility, Corporate veil, CSR, Ecuador, Enforcement, Forum non conveniens, https://www.canlii.org/en/on/onca/doc/2018/2018onca472/2018onca472.html?resultIndex=9, Jurisdiction, Kiobel, Recognition and enforcement, Rule of law, Supreme Court
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- Gray v Hurley. Court of Appeal refers to Luxembourg on anti-suit to support EU jurisdiction against ex-EU action. 19/02/2020
- Applicable law and arbitration. Sulamerica extensively discussed in Kabab-Ji SAL v Kout Food Group. 17/02/2020
- NN v Barrick Tz Limited (Acacia) in the English courts. Another CSR /jurisdictional marker with likely role for Articles 33-34 Brussels Ia. 14/02/2020
- Hutchinson v MAPFRE and Ice Mountain (Obeach) Ibiza. Spotlight on the consumer and insurance title of Brussels Ia. 12/02/2020
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