June 10, 2014 Articles

Enforcing an Ecuadorian Judgment Against a U.S. Company in Ontario

By Cheryl Woodin and Jonathan Chen

In Yaiguaje v. Chevron Corp., 2013 ONCA 758, the Ontario Court of Appeal affirmed that an Ontario court has the power to recognize and enforce a judgment for approximately $9.51 billion rendered by Ecuador’s National Court of Justice against Chevron Corp. and its Canadian subsidiary, Chevron Canada Limited, which was not a party to the Ecuadorian action. In doing so, the Ontario Court of Appeal also lifted the stay on the proceeding that had been granted by the motions judge, rendering the enforcement win theoretical only. Soon after this decision, however, Chevron and Chevron Canada in Yaiguaje v. Chevron Corp., 2014 ONCA 40, successfully brought a motion to stay the order pending its appeal to the Supreme Court of Canada.

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