Could Chevron's Canadian subsidiary be liable for
environmental damages awarded against Chevron, the parent company,
in Ecuador? This question remains unanswered despite the recent
release of a much-anticipated Supreme Court of Canada decision. The
Supreme Court decision is important in that it clarifies the law on
when Canadian courts will agree to hear lawsuits for the
recognition and enforcement of foreign judgments. However, several
of the most interesting legal issues, which could have
extraordinary implications for corporate structuring of
multi-national companies, remain unaddressed.
Environmental Destruction in Ecuador
The Lago Agrio region of the Ecuadorian Amazon is
internationally known for the serious ecological problems caused by
oil field development in the area, including water pollution, soil
contamination, deforestation, and cultural upheaval. The
plaintiffs, representing approximately 30,000 Ecuadorian villagers,
allege that these problems were
