Can a Canadian parent company with a subsidiary operating in a
foreign jurisdiction be liable for human rights violations in the
foreign jurisdiction that occur at the level of the subsidiary? In
a recent decision, an Ontario court has allowed this issue to
proceed to trial in three related actions, rejecting arguments by
the defendants that the claims brought by the plaintiffs, all of
whom are residents of the foreign jurisdiction, disclose no
reasonable cause of action.
While the recent Ontario court decision involved a Canadian
mining company, the outcome has implications for other industries.
Whatever the outcome at trial where issues of liability will
ultimately be determined, one thing is clear: international public
expectations are changing, and directors and officers of Canadian
companies need to be aware of the potential risk of claims by
foreign plaintiffs seeking redress for alleged harm committed
beyond Canada's borders.
