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The Granting and Recognition of Extra-territorial Injunctions Revisited

September-7-2005

Lawyer Jason Wadden
Area Litigation

Summary

Article originally published in the Federated Press, Volume XI, No.2 of Commercial Litigation, 2005

There can be little question that the Supreme Court of Canada's decision in Morguard Investments Ltd. v. De Savoye1 has brought significant changes in the law regarding the assumption and recognition of jurisdiction. However, until recently, the extent to which Morguard changed the law regarding the recognition of injunctions granted by a foreign court remained unclear. The flip-side of this question has also been uncertain: when will a court grant an injunction against a person where the court only has "assumed" jurisdiction over the person (under the Morguard test), as opposed to in personam jurisdiction in the traditional sense (i.e., the person was physically located within the court's geographic jurisdiction)? Historically, the common law rules provided that only foreign judgments for a definite sum of money could be recognized and enforced, and courts of equity were reluctant to grant injunctions unless they had in personam jurisdiction over the target of the injunction.

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