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ARTICLE · 17 MARCH 2014

Mind Your Own Business Canada! Diplomatic Immunity In The Commercial Context

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Foreign missions conduct their business with the assumption that the rules of diplomatic immunity and autonomy under international and domestic legislation are observed and respected in their host countries.

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Foreign missions conduct their business with the assumption that the rules of diplomatic immunity and autonomy under international and domestic legislation are observed and respected in their host countries. However, this diplomatic immunity is not without limits and there are certain exemptions under which Canada exercises jurisdiction, particularly in the commercial sphere.

On March 6, 2014, Justice Smith of the Ontario Superior Court of Justice granted the Royal Embassy of Saudi Arabia in Ottawa leave to appeal a previous court ruling, which held that diplomatic immunity does not extend to an embassy in a breach of contract case that involves the termination of an independent contractor due to the triggering of the "commercial activity" exception under the State Immunity Act, RSC 1985, c S-18 (the "SIA"). The impending appellate decision will be of great significance to foreign missions in Canada who often employ Canadian citizens and permanent residence and who

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