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Ecuadorians can sue Chevron in Canada, Supreme Court rules

Ecuadorian villagers can sue Chevron and its Canadian subsidiary in an Ontario court to enforce a $9.5-billion (U.S.) judgment from Ecuador, the Supreme Court ruled Friday. The ruling has major implications for Canadian multinational companies whose business activities raise environmental or human rights concerns around the globe. The ruling weakens the so-called “corporate veil” that has shielded subsidiaries from responsibility for the actions of their corporate parents. “In a world in which businesses, assets, and people cross borders with ease, courts are increasingly called upon to recognize and enforce judgments from other jurisdictions,” Justice Clément Gascon wrote in a 7–0 ruling.

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Texaco/Chevron lawsuits (re Ecuador)

Canadian Supreme Court rules Ecuadorian plaintiffs can sue Chevron to enforce Ecuadorian oil pollution judgment