I. Overview of motions to set aside an Ontario order recognizing and enforcing an international arbitral award and to stay Ontario enforcement proceedings as forum non conveniens 

[1] The applicant, Sistem Mühendislik İnşaat Sanayi Ve Ticaret Anonim Sirketi (“Sistem”), a Turkish company, invested in a hotel in the city of Bishkek, in the Kyrgyz Republic (the “Republic”), ultimately becoming sole owner and operator. Sistem was evicted from the hotel, literally at gun-point, in 2005 during a period of revolutionary politics in the Republic. Sistem then initiated proceedings before the International Centre for Settlement of Investment Disputes claiming compensation from the Republic for the loss of its investment. The Republic defended the claim before the international arbitration tribunal. Sistem succeeded on its claim, obtaining an award against the Republic of U.S. $8.5 million, together with interest and costs. 

[2] The Republic did not pay the Award. 

[3] Sistem then initiated proceedings to enforce the Award. Specifically, Sistem commenced this application against the Republic under the International Commercial Arbitration Act and the State Immunity Act seeking recognition and enforcement of the Award (the “Application”). Although made aware of the Application, the Republic did not respond. By order dated January 5, 2011, Echlin J. recognized and enforced the Award and ordered the Republic to pay Sistem an amount in Canadian currency sufficient to purchase US$9,147,470, which covered all elements of the Award (the “Judgment”).