No Shortcuts For Service! Convention Supersedes The Rules For Service Of Claims Abroad

In Khan Resources Inc. v. Atomredmetzoloto JSC the Ontario Court of Appeal confirmed that the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (the “Convention”) supersedes Ontario’s out of province service rules. In light of this decision, Ontario litigants seeking to sue a foreign entity must exhaust all steps to serve the claim in accordance with the Convention before asking Ontario’s courts to validate service and, even then, it is uncertain whether any exceptions to the Convention’s procedure will be permitted.

Background

Khan Resources Inc. and its subsidiaries (“KRI”) are involved in uranium exploration and development in Mongolia. Khan entered into a joint venture to develop a property in Mongolia with Atomredmetzoloto JSC and its subsidiary (“ARMZ”), companies controlled by the Russian State Atomic Energy Corporation.