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On the Docket for 2018 – Ontario Court of Appeal to Address Enforcement of Foreign Judgments in Chevron

By a decision dated October 31, 2017, the Court of Appeal for Ontario took the unusual step of varying its own prior order concerning security for costs in Yaiguaje v. Chevron Corporation...[T]he panel reasoned that it could not be said...that the appeal was “wholly devoid of merit”...On appeal, the Court of Appeal will consider whether the assets of Chevron Canada can be used to satisfy a judgment that the appellants hold as against Chevron Corporation, under section 18 of the Execution Act and, if not, whether the corporate veil can be pierced in this case to allow recovery against Chevron Canada...[T]he Court of Appeal is asked to address the merits directly...[T]he Court of Appeal’s decision signals possible divergence of judicial opinions with respect to either the interpretation to be given to the Execution Act or the application of principles of corporate separateness in the context of enforcement of foreign judgments...It remains to be seen whether the Court of Appeal will accept the appellants’ “innovative and untested” arguments, especially with regard to piercing the corporate veil.  The hearing on the ultimate merits is expected to provide clarification on the Canadian courts’ take on enforcing foreign judgments.

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