SCC Allows Ecuadorian Plaintiffs To Bring Enforcement Claim Against Chevron In Ontario

In a landmark decision, the Supreme Court of Canada has held that the Ontario Superior Court of Justice has jurisdiction to hear an enforcement action on a multi-billion dollar Ecuadorian judgment against both Chevron, a U.S. corporation with no presence in Ontario, and Chevron Canada, a seventh-level indirect subsidiary of Chevron that was not party to the Ecuadorian action.

Background

The underlying dispute arose from Texaco's extraction and exploration activities in the Lago Agrio region of Ecuador and the extensive environmental pollution alleged to have occurred as a result. The plaintiffs represented approximately 30,000 indigenous Ecuadorian villagers who first attempted to sue Texaco (later merged with Chevron) in New York in 1993. That claim was dismissed in 2001 on the basis that New York was an inappropriate forum to hear the proceeding. After multiple proceedings in Ecuador, the plaintiffs ultimately obtained a judgment in 2011 for US$17.2 billion