Under the State Immunity Act, foreign states are generally immune from being sued in Canada. This includes being sued on a foreign judgment. However, in 2012 Canada enacted legislation to give victims of terrorism the ability to sue a foreign state that sponsored the terrorism. It also made it easier for foreign judgments against such a state to be enforced in Canada.
In Tracy v The Iranian Ministry of Information and Security, 2016 ONSC 3759 (released June 9, 2016; likely to be posted in the week of June 13, 2016, in CanLII) the Ontario Superior Court of Justice had to consider these legislative reforms and how they applied to a series of American judgments rendered against Iran in favour of American victims of terrorist acts which Iran was found to have sponsored. The court held that Iran was not immune from the enforcement proceedings and that accordingly the American judgments were enforceable against certain assets of Iran in Ontario.
The decision is reasonably detailed. It involves interpretation of the State Immunity Act and the Justice for Victims of Terrorism Act. It also considers issues relating to the limitation period and the enforcement of punitive damages awards (in this case, in the hundreds of millions of dollars). Not all of the analysis resonates as convincing and there is considerable scope for a possible appeal. For example, Iran’s argument that the loss or damage suffered by the victim had to have been, on the language of s 4(1) of the JVTA, suffered after January 1, 1985, did not prevent the enforcement of American decisions in respect of acts of terror which happened before that date because, the court held, the victims continued to suffer harm on an ongoing basis. This seems vulnerable to challenge. In addition, the court’s reasoning as to why the enormous punitive damages awards were not contrary to public policy is extremely brief.
However, on any appeal, Iran does have a significant procedural problem to overcome. It did not defend the enforcement actions when they were initially brought in Ontario. All of the immunity arguments were canvassed by the court as part of Iran’s motion to have the resulting default judgments set aside, on the issue of whether Iran might have a viable defence on the merits. But at no point did Iran offer any explanation for the initial failure to defend. While not conclusive, this weighs against setting the judgments aside even if Iran can show merit to its position on immunity.
The timing of the court’s decision against Iran could pose challenges for the current Canadian government, which is currently working to re-engage with Iran after the previous government cut ties in 2012 (see news story here). In addition, a Montreal-based professor has recently been jailed in Iran and this has caused considerable concern in Canada (see news story here).
The University of Lucerne and the Hague Conference on Private International Law (HCCH) will be co-organizing a conference on the implementation of the Hague Choice of Law Principles ( “Towards a Global Framework for International Commercial Transactions: Implementing the Hague Principles on Choice of Law in International Commercial Contracts”) on 8/9 September 2016. The conference serves to analyze the impact and prospects of the 2015 Principles on Choice of Law in International Commercial Contracts (the Hague Principles) in the context of other relevant legal instruments applicable to international commercial transactions. It brings together distinguished academics, experts, private practitioners and representatives from various international institutions.
Scholars and practitioners in the fields of private international law and commercial law and dispute resolution are encouraged to participate.
Conference Directors: Prof. Dr. Daniel Girsberger, University of Lucerne (Switzerland), Dr. Christophe Bernasconi, Secretary-General (HCCH)
Venue: University of Lucerne, Auditorium 9, Frohburgstrasse 3, CH-6002 Lucerne (Switzerland)
Speakers: Jürgen Basedow, Neil B. Cohen, Andrew Dickinson, Roberto Echandi, José Angelo Estrella Faria, Franco Ferrari, Lauro Da Gama e Souza Jr, Thomas Kadner Graziano, Peter Mankowski, Jan L. Neels, Emily O’Connor, J.A. Moreno Rodríguez, Geneviève Saumier, Linda Silberman, Renaud Sorieul
Participation fee: CHF 250.– (including documentation, catering and dinner on Thursday, 8 September 2016; accommodation not included)
Registration and further information: https://regis.buchertravel.ch/event/HCCH_2016
Contact: Mrs. Lisbeth Meule (lisbeth.meule@unilu.ch)
La Commission européenne dresse, le 19 mai 2016, un premier rapport inquiétant quant aux statistiques et encourageant quant aux efforts menés sur la lutte contre la traite des êtres humains en Europe.
UNCITRAL Working Group V (Insolvency Law) has issued a report on the work of its forty-ninth session, which took place in New York from 2 – 6 May 2016. The Working Group continued its deliberations on the cross-border insolvency of multinational enterprise groups, the recognition and enforcement of insolvency-derived judgments and the obligations of directors of enterprise group companies in the period approaching insolvency. Furthermore the report communicates that a meeting of an open-ended informal group established to consider the feasibility of developing a convention on international insolvency issues has taken place. This is rather exciting, as the development of an international insolvency convention by UNCITRAL would constitute the next big step in international insolvency law leaving behind the defiencies of soft law. The report is available at: http://www.uncitral.org/uncitral/en/commission/working_groups/5Insolvency.html.
The ILA reminds you to join the celebration of yet another landmark – the Seventy7th Biennial International Conference 2016 – which is set to take place from the 7-11 August 2016 in Sandton, South Africa.
Come join an illustrious panel of distinguished local and international speakers, fellow law professionals, business leaders, academics, as well as young scholars from different parts of the world.
Judge Navi Pillay, who will participate in the panel on international criminal law, and former UN High Commissionar for Human Rights, will deliver the key note address at the opening session of the conference.
If you’ve not yet registered, please see the programme online and join us in Sandton. Should you have registered already, additional speaker sessions have been added and high profile speakers confirmed!The regular registration closes 30 June 2016.
Register, by clicking here.
Theme by Danetsoft and Danang Probo Sayekti inspired by Maksimer