Failure To Respond To Foreign Litigation Can Be Risky

In the complex world of international business, many companies and investors often venture outside of their countries of residence or domicile with the hope of developing new and successful business projects or making successful investments. In doing so, however, these companies and investors, plus their professional advisers sometimes fail to understand that actively doing business in foreign countries can expose them to the jurisdiction of a foreign court in the event that their prospective business ventures fail and litigation ensues, and, moreover, that a failure to respond to such foreign litigation can result in judgments against them that will be enforceable in Ontario even if the litigation is ignored.