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Canada’s Supreme Court ruled on Friday that a group of Ecuadorian villagers can proceed with their US$9.5 billion pollution lawsuit against Chevron Corp. (NYSE:CVX) in the Canadian province of Ontario.
The court found simple reasons to let the suit be pursued in Canada, noting that the original lawsuit, a claim for environmental damages in the Amazon jungle, was properly brought in Ecuador. However, it also found the Ecuadoran plaintiffs had every right to bring the claim against Chevron, since it was able to serve notice of the enforcement claim at the company’s office in Ontario.
The main issue the court was supposed to decided on was whether there was a real and substantial connection between the villagers and the dispute on one hand and the province of Ontario on the other.
However, Canada’s top court said there was no need to prove such connection, as long as a foreign court assumed valid jurisdiction over a case.
“Canadian courts, like many others, have adopted a generous and liberal approach to the recognition and enforcement of foreign judgments,” Justice Clement Gascon wrote in the unanimous, seven-judge ruling.
While Chevron Corp. has no assets in the South American country, Ecuador’s Supreme Court has affirmed a $9.5 billion US judgment against the company, which allowed locals to pursue its subsidiary, Chevron Canada.
“In today’s globalized world and electronic age, to require that a judgment creditor wait until the foreign debtor is present or has assets in the province before a court can find that it has jurisdiction in recognition and enforcement proceedings would be to turn a blind eye to current economic reality,” Justice Gascon wrote.
Today’s decision could set a precedent for similar cases involving mining companies around the world.
6 Comments
David_R59
I guess they didn’t get what they wanted in the US. Now they’ll try Canada.
If it doesn’t work in Canada, where will they try next?
Just another make-work project for judges, lawyers and their friends.
Paul Paz y Miño
David, the people of Ecuador have been suffering an dying for years awaiting justice and a clean-up. They won their case in Ecuador after years of legal battle and the most litigated case in the country’s history. Chevron admitted to the deliberate dumping (operating as Texaco) and whistleblower videos (authenticated by Chevron’s lawyers) showed the pits the claim to have been cleaned were not. Chevron has fled like a deadbeat dad and now the Ecuadorians are going to sue them in Canada to may them clean up the mess they created so long ago. It’s the most important corporate accountability case in history. Chevron, on the other hand, could have settled and clean-up ages ago. They have instead spent close to $2 BILLION on lawyers and PR agencies to attack their victims rather than pay to cleanup. So if anyone is deserved of your criticism of “make-work projects” it is Chevron. Thanks.
Anopheles
What the canadian supreme court just did was throw out the entire principle of legally separate entities.
Not much different than saying if your adult children are sued, then the plaintiff can go after the parents because they are “related”.
patentbs
Now come the appeals! This is a landmark and we, as Canadians funding our court system, want to be certain to get this bullet proof. It is not just a matter of enforcement of another court’s order.
jbryden
Just proves our Canadian Supreme Court is stocked with left leaning idiots
jbryden
how much of our hard earned dollars are going to be wasted on this stupidity