Litigation and Alternative Dispute Resolution

The Supreme Court of Canada recently reviewed the law of recognition and enforcement in Canada of foreign judgments in a decision called Chevron Corp. v. Yaiguaje. The decision has implications for large multi-national corporations with subsidiaries in Canada, as the effect of the decision is to open the door to ignoring the separate legal personality of the local subsidiaries and putting at risk the assets of those subsidiaries in order to satisfy a judgment obtained against a foreign parent corporation in a foreign jurisdiction. The decision is therefore a victory for foreign plaintiffs who are being thwarted in their enforcement efforts by complex corporate structures that shield assets from them under the legal fiction of separate corporate personalities.

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