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ARTICLE · 24 APRIL 2017

Enforcement Remedy Crafted By Ontario Court To Foil "Shell Game" Tactics

McCarthy Tétrault
McCarthy Tétrault
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McCarthy Tétrault

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These tools should be considered by parties seeking enforcement in Ontario.

CanadaLitigation, Mediation & Arbitration
The International Arbitration Blog
The International Arbitration Blog
Junior Sirivar
Junior Sirivar
Avi Bourassa
Avi Bourassa
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The Divisional Court recently upheld the Ontario Superior Court's decision in T. Films S.A. v. Cinemavault Releasing International Inc. ("T. Films") which granted recognition and enforcement of a successful arbitral plaintiff's award and crafted an enforcement remedy using other legal tools (the oppression remedy and breach of trust) to foil the arbitral defendant's "shell game" tactics.1 Corporate affiliates and a director were ultimately held liable for the arbitral award. These tools should be considered by parties seeking enforcement in Ontario.

The Arbitration

In 2012, a Luxembourg film production company, called T. Films commenced an arbitration against Cinemavault Releasing International Inc. ("CRI"), an Ontario corporation distributing T. Films' film, for unpaid distribution revenue to which T. Films was entitled pursuant to an exclusive sales agency agreement.2 T. Films won and was awarded USD$359,218 in damages (including interest) for unpaid

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