Ecuadorian Plaintiffs Can Seek To Enforce $9 Billion Judgment In Ontario

The Supreme Court of Canada recently released its decision in Chevron Corp v. Yaiguaje. The decision upheld a ruling granting the Ontario Courts jurisdiction to enforce a judgment from Ecuador for environmental damages. The Supreme Court confirmed a two-step approach to recognizing foreign judgments. First, determine if the foreign court has a "real and substantial connection to the litigants or subject matter". Second, determine if the Canadian claim (seeking to recognize judgment) was properly served on the debtor. The case is of importance to Canadian companies operating internationally, and in particular to resource companies who are the subject of environmental litigation abroad, as it clarifies that Canadian Courts have jurisdiction to enforce foreign judgments at home.