Today the Supreme Court of Canada released reasons in Kuwait Airways Corporation v. Republic of Iraq, 2010 SCC 40, unanimously ruling in favour of the recognition and enforcement of a foreign judgment.
The plaintiff, a Kuwaiti airline, had obtained a judgment in the United Kingdom, worth over CDN$ 1 billion, against Iraq’s national airline, for damages suffered as a result of the Iraqi airline’s appropriation of aircraft and equipment following Iraq’s 1990 invasion of Kuwait. The English court also found that the Iraqi government had controlled, funded, and supervised its airline’s legal defence, and accordingly held the Republic of Iraq liable for the Kuwaiti airline’s litigation costs, in the amount of approximately CDN$ 84 million.
The Kuwaiti airline then sought to enforce its UK judgment for costs against assets owned by the Republic of Iraq in Quebec. Iraq argued that the judgment could not be enforced anywhere in Canada, as it was entitled to immunity pursuant to the State Immunity Act, R.S.C. 1985, c. S-18. The Quebec Superior Court and Court of Appeal agreed with Iraq.
