I, Motions to stay an Ontario action to recognize and enforce an Ecuadorean

judgment

[1] When a foreign plaintiff obtains a final, monetary foreign judgment against a foreign defendant and brings an action in Ontario for the recognition and enforcement of the judgment, what does the foreign plaintiff need to demonstrate in order to secure the recognition and enforcement of the judgment by a cOUlt of this province? The plaintiffs in this action state that they need only show that a real and substantial cOlmection existed between the foreign COUlt and the subject-matter and/or defendant in the foreign proceeding and, in this case, of that there is no doubt. The defendants contend that the plaintiffs need to demonstrate more - that a real and substantial connection exists between the defendants and this jurisdiction. The defendants take the position that no such connection exists and they move to strike out the service ex juris on them of the Amended Statement of Claim or to stay the plaintiffs' action.

[2] In 2011 the plaintiffs, residents of Ecuador, obtained a judgment in an Ecuador trial court which required the defendant, Chevron Corporation, to pay damages of approximately $18 billion. The trial judgment was upheld by an Ecuadorean intermediate COUlt of appeal which, the parties agreed, turned the trial judgment into a final judgment for purposes of recognition and enforcement (the "Judgment").

[3] In 2012 the plaintiffs commenced an action in this Court seeking recognition and enforcement of the Judgment. The plaintiffs sued not only the judgment debtor, Chevron Corp., but also one of its indirectly-held subsidiaries, the defendant, Chevron Canada Ltd. Neither defendant has filed a statement of defence. Instead, both defendants have brought motions to set aside service of the originating process or to stay this action on the basis that this Court lacks jurisdiction to hear the action.

[4] For the reasons set out below, I dismiss the defendants' request to set aside the service of the originating process, but I grant the defendants' motions to stay the action.