Arrivederci, For Now

Multi-national insolvencies often spawn complex litigation in multiple jurisdictions. In Sociedad Concesionaria Metropolitana De Salud SA v Webuild SPA, the Commercial List was asked to enforce a Chilean arbitral award against the Canadian assets of an Italian company that had acquired certain assets of the unsuccessful – and now insolvent – party to the arbitral proceedings. Justice Steele found that Ontario had proper jurisdiction over the respondent, but issued a rare temporary stay of the enforcement proceedings until a threshold issue could be determined by the Italian courts.

Facts: A Web of International Proceedings

The applicant, SCMS, is a Chilean construction company that entered into a construction contract with Italian conglomerate Astaldi through its Chilean division, ASC. In December 2021, SCMS was successful in an arbitration against ASC. The award, plus interest, totalled more than $180 million (the "Arbitral Award").