New Frontiers - Mining Litigation In Canada For The Activities Of Foreign Subsidiaries

In June, 2014, a Notice of Civil Claim was filed in the British Columbia Supreme Court in the case of Adolfo Garcia v. Tahoe Resources Inc. (“Garcia”).  In Garcia, the plaintiffs have sued a Canadian parent company that conducts mining activities through a foreign subsidiary in Guatemala.  This is the first time this type of claim has been bought in British Columbia. This claim parallels the claim brought in Ontario in Choc v. Hudbay Minerals Inc. (“Choc”).  The courts in Ontario have refused to strike the claim in Choc and it appears to be heading to trial. 

Historically, corporations have relied upon the separate legal personality of subsidiary corporations to shield the parent corporation from direct legal liability for the activities of the subsidiary.  Garcia and Choc are examples of plaintiffs, usually backed by non-governmental organizations, using traditional legal principles in an attempt attach liability directly to the parent corporation for the