Private International Law inCommon Law Canada

Cases, Text and MaterialsTHIRD EDITION

NICHOLAS RAFFERTYGeneral EditorFaculty of Law

University of Calgary

JOOST BLOM ELIZABETH EDINGERFaculty of Law Faculty of Law

University of British Columbia University of British Columbia

STEPHEN G.A. PITEL GENEVIEVE SAUMIERFaculty of Law Faculty of Law

University of Western Ontario McGill University

JANET WALKER CATHERINE WALSHOsgoode Hall Law School Faculty of Law

York University McGill University

2010EMOND MONTGOMERY PUBLICATIONS

TORONTO, CANADA

Detailed Table of Contents

Preface to the Third Edition iiiAcknowledgments vSummary Table of Contents viiTable of Cases xxv

PART ONE GENERAL

CHAPTER ONE INTRODUCTION 3Selected Bibliographical References 5

CHAPTER TWO HISTORY AND THEORY 7Intellectual History 7Theoretical Perspectives on Choice of Law 8

Comity 9Story, Commentaries on the Conflict of Laws 9Dicey, The Conflict of Laws 10

Vested Rights 10Beale, Selections from A Treatise on the Conflict of Laws 11Beale, A Treatise on the Conflict of Laws, vol. 3 11

The Local Law Theory 12Cook, The Logical and Legal Bases of the Conflict of Laws 13

A Theory of Justice 17Governmental Interest Analysis 18

Currie, "Notes on Methods and Objectivesin the Conflict of Laws" 19

Currie, "Comment on Babcock v. Jackson" 20Cavers, "A Critique of the Choice-of-Law Problem" 21

Choices for Choice of Law 23Brilmayer, Conflict of Laws:

Foundations and Future Directions 23Selected Bibliographical References 27

IX

Detailed Table of Contents

CHAPTER THREE CONFLICTS AND THE CONSTITUTION 29Pre-Morguard 29

Churchill Falls (Labrador) Corp. Ltd. v.Attorney-General of Newfoundland 30

Post-Morguard 35Morguard Investments Ltd. v. De Savoye 36Huntv. T&Nplc 45Tolofson v. Jensen 52British Columbia v. Imperial Tobacco Canada Ltd 54

Selected Bibliographical References 60

CHAPTER FOUR PUBLIC POLICY 61General 61

United States of America v. Ivey 61Public Policy 70

Public Policy and Procedural Justice 70Public Policy and Fraud 71A National or International Standard? 72

Civil Code of Quebec 72Note 72Kuwait Airways Corp. v. Iraqi Airways Co. (Nos. 4 and 5) 73Note 78

Attenuated Scope of Forum Public Policy 78Overriding Forum Public Policy 79

Civil Code of Quebec 79Notes 79Society of Lloyds v. Meinzer 81Note 93

Overriding Foreign Public Policy 93Civil Code of Quebec 93Notes 93Gillespie Management Corp. v. Terrace Properties 94Notes 95

Public Policy as a Basis for Depecage 98Civil Code of Quebec 98Notes 99

Public Policy in an Interprovincial Context 99Penal Laws 101

Jurisdiction and Choice of Law in Crime 101Recognition of Foreign Penal Laws 102Characterization 105

Huntington v. Attrill 105Notes 107

Penal Laws in the Interprovincial Context 109

Detailed Table of Contents xi

Tax Laws 109General 109

Civil Code of Quebec 109Note 109

Indirect Enforcement 110Stringam v. Dubois 110

Characterization 115Relaxation of the Tax Exclusion? 116

Re Sefel Geophysical Ltd 116Re Matol Botanical International Ltd 117Notes 119

International Tax Conventions 121The Tax Exclusion in the Interprovincial Context 121

Other Public Laws 122General 122Nationalization, Expropriation, and Confiscation Laws 123

Selected Bibliographical References 124

CHAPTER FIVE PERSONAL CONNECTING FACTORS 127Introduction 127

Relevance of the Personal Law 127Domicile vs. Nationality 127Domicile, Residence, and "Most Substantial Connection" 128

Domicile 129Domicile of Origin and Domicile of Choice 129

Agulian & Anr v. Cyganik 129Re Urquhart Estate 134Notes 137Civil Code of Quebec 141Notes 142Domicile and Habitual Residence Act 143Notes 143

Persistence of the Domicile of Origin and the Doctrine of Revival 144Domicile and Habitual Residence Act 144Notes 144

Domicile of Children 146Civil Code of Quebec 146Family Law Act 146Charter of Rights Compliance Act 146Domicile and Habitual Residence Act 146Notes 147

Mental Incapacity 148Civil Code of Quebec 148Domicile and Habitual Residence Act 148Note 149

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Domicile and Gender 150Civil Code of Quebec 150Domicile and Habitual Residence Act 150Notes 150

Relevance of Context 151Cook, The Logical and Legal Bases of the Conflict of Laws 151Restatement (Second) of Conflict of Laws 152Notes 153

Residence 154General 154Physical Presence and Residence 155

Canada (Minister of Citizenship & Immigration) v. Wall 156Notes 161

Habitual Residence and Ordinary Residence 163Adderson v. Adderson 163Notes 167Pippa Rogerson, "Habitual Residence: The New Domicile" 167Quigley v. Willmore 170Notes 179

Relevance of Context 179Haigv. Canada; Haigv. Canada (Chief Electoral Officer) 179Notes 184

Corporations 185National Trust Company Ltd. v. Ebro Irrigation

and Power Company Ltd 185Notes 187

The Principle of Proximity 191Selected Bibliographical References 192

PART TWO JURISDICTION

CHAPTER SIX JURISDICTION IN PERSONAM 197Introduction 197Parties to an Action 197

Plaintiffs: Standing To Sue 198Success International Inc. v. Environmental

Export International of Canada Inc 198Immunities from Suit 204

Circumstances Justifying Assumption of Jurisdiction 204Jurisdiction Simpliciter 204

Parties Within the Jurisdiction 204Maharanee of Baroda v. Wildenstein 204

Parties Outside the Jurisdiction 207Moran v. Pyle National (Canada) Ltd 208Note 216

Detailed Table of Contents xiii

Muscutt v. Courcelles 217Note 224Spar Aerospace Ltd. v. American Mobile Satellite Corp 224Coutu v. Gauthier (Estate) 228Van Breda v. Village Resorts Ltd 236

Territorial Jurisdiction 246Court Jurisdiction and Proceedings Transfer Act 246Stanway v. Wyeth Pharmaceuticals Inc 249

Jurisdictional and Material Facts and Evidence 255AG Armeno Mines and Minerals Inc. v. Newmont Gold Co 255MTU Maintenance Canada Ltd. v. Kuehne &

Nagel International Ltd 260Class Actions 266

Harrington v. Dow Corning Corp 266Ward v. Canada (Attorney General) et al 275

Selected Bibliographical References 280

CHAPTER SEVEN DISCRETION TO DECLINE JURISDICTION ANDRESTRAINT OF FOREIGN PROCEEDINGS 281

Introduction 281The English Cases 283

Spiliada Maritime Corp. v. Cansulex Ltd 283Societe Nationale Industrielle Aerospatiale v. Lee Kui Jak 299Airbus Industrie GIE v. Patel and Others 309

The Canadian Cases 312Amchem Products Inc. v. British Columbia

(Workers' Compensation Board) 312Stays of Local Proceedings: Forum Non Conveniens 323

Young v. Tyco International of Canada Ltd 323Lloyd's Underwriters v. Cominco Ltd 333Teck Cominco Metals Ltd. v. Lloyds Underwriters 353

Burden of Proof 358Anti-Suit Injunctions 358

Hudon v. Geos Language Corp 358Jurisdiction-Selecting and Arbitration Clauses 365

Jurisdiction-Selecting Clauses: The Common Law Rule 366Z.I. Pompey Industrie v. ECU-Line N.V. 366Note 378

Arbitration Clauses 378Prince George (City) v. McElhanney Engineering Services Ltd. .. 379

Class Actions 388Ward v. Canada (Attorney General) 388

Selected Bibliographical References 393

xiv Detailed Table of Contents

PART THREE JUDGMENTS

CHAPTER EIGHT RECOGNITION AND ENFORCEMENT OFFOREIGN JUDGMENTS AND ARBITRAL AWARDS . . . 397

Introduction 397The Common Law Rules 398

Pecuniary Judgments 398Final and Conclusive 399

Nouvion v. Freeman 399Jurisdiction of the Foreign Court in the International Sense 404

Presence 404Forbes v. Simmons 404

Submission 406First National Bank of Houston v. Houston E & C Inc 406Clinton v. Ford 410Mid-Ohio Imported Car Co. v. Tri-K Investments Ltd 413

A Real and Substantial Connection: The Morguard Rule 420Beals v. Saldanha 420Braintech Inc. v. Kostiuk 425

Defences 434Godard v. Gray 434Beals v. Saldanha 436

Non-Pecuniary Judgments 446Pro-Swing Inc. v. Elta Golf Inc 446

Class Action Judgments 463Currie v. McDonalds Restaurants of Canada Ltd 463Note 475

Conversion by Registration: The Statutory Mode 476Reciprocal Enforcement of Judgments Statutes 476

Central Guaranty Trust Co. v. Deluca 477Re Carrick Estates Ltd. and Young 482Owen v. Rocketinfo Inc 483

Canadian Judgments Acts 488Enforcement of Canadian Judgments and Decrees Act 488

Arbitral Awards 492Foreign Arbitral Awards Act 493Schreter v. Gasmac Inc 496

Selected Bibliographical References 507

PART FOUR CHOICE OF LAW: GENERAL

CHAPTER NINE CHOICE OF LAW METHODOLOGY 511Choice of Law as Part of the System of Private International Law 511

Practical Function of Choice of Law 511Choice of Law as an Expression of Theories of Private International Law 512

Detailed Table of Contents xv

The Standard or Classical Approach to Choice of Law 515Nature of the Choice of Law Rule 515

Components of the Rule 515Multilateral and Unilateral Choice of Law Rules 516Reference to More Than One Legal System 516

The Process of Applying the Choice of Law Rule 517Establishing the Choice of Law Rule 517Characterization 519Following the Connecting Factor 521Application of the Legal Rule Indicated by the Choice of Law Rule 522

Generally 522Exceptions to the Application of a Choice of Law Rule 522Ambiguities in the Application of a Choice of Law Rule 523

Neilson v. Overseas Projects Corp. of Victoria Ltd 523Notes 533

Perceived Shortcomings of the Classical Method 538Arbitrariness 538No Account Systematically Taken of Real Conflict of

State Policies That Underlie the Choice of Law Issue 539No Account Systematically Taken of International and

Interprovincial Policies 540Alternatives to the Classical Method 540

Common Characteristic: Issue Particularized Rather Than Categorized 540Proper Law Approach 541Governmental Interests 541Principles of Preference 545The Second Restatement 546The "Better Law" 548Substantive Rules for Multistate Cases 548Defenders of the Traditional System 549

The Present Orientation of Canadian Choice of Law 550Selected Bibliographical References 551

CHAPTER TEN APPLYING FOREIGN LAW 553Foreign Law and the Adversary System 553

Foreign Law: Fact or Law? 553Fentiman, Foreign Law in English Courts: Pleading,

Proof and Choice of Law 554Notes 555

Implications of Party Choice 555Old North State Brewing Co. v. Newlands Services Inc 555Notes 557Pettkus v. Becker 558Notes 559

xvi Detailed Table of Contents

Where the Court Must Apply Foreign Law 559Fernandez v. "Mercury Bell" (The) 560Notes 564

Where Foreign Law Must Be Excluded 565Pleading and Proving Foreign Law 566

Pleading Foreign Law 566Proving Foreign Law Through Expert Evidence 566

Bumper Development Corp. Ltd. v.Commissioner of Police of the Metropolis 567

Notes 570Mercantile Mutual Insurance (Australia) Ltd. v. Neilson 571

Statutory Modes of Proof: Production of Copies 574Admission or Agreement 575Stated Case to Foreign Jurisdiction 575

Within the Canadian Federation 576Judicial Notice by the Supreme Court of Canada 576

Hunt v. T&N pic 576Note 577

Statutory Authority for Taking Judicial Notice 577Civil Code of Quebec 577Notes 577

Implications of the Constitutional Principles of Order and Fairness? 580Nystrom v. Tarnava 580

Pleading and Determining the Constitutionality of Extraprovincial Law 583Hunt v. T&N pic 583

Selected Bibliographical References 589

CHAPTERELEVEN LAW OF PROCEDURE 591The Substance/Procedure Distinction 591

Civil Code of Quebec 591Note 591

Limitation of Actions (Prescription) 592Civil Code of Quebec 592Tolofson v. Jensen 593Notes 597

Restrictions on Remedial Relief 603Statute of Frauds and Like Requirements 604Quantification of Damages 605Recovery of Legal Costs and Prejudgment Interest 607

Parties 608Status To Sue 608

International Assn. of Science and Technologyfor Development v. Hamza 608

Notes 615

Detailed Table of Contents xvii

Evidence 617Procedure or Substance? 617Obtaining Evidence Abroad for Use in Forum Proceedings 618Obtaining Evidence in the Forum for Use in Extraprovincial Proceedings 618

Evidence Acts 618Conventions 619Interprovincial Subpoenas 619

Discovery in Violation of Foreign Law 620Ed Miller Sales & Rentals Ltd. v. Caterpillar Tractor Co 620Notes 621

Selected Bibliographical References 622

PART FIVE OBLIGATIONS

CHAPTER TWELVE TORTS 627General Choice of Law Principles 627

The Rule in Phillips v. Eyre 627Phillips v. Eyre 627Note 628McLean v. Pettigrew 629Note 631

Trends in the United States 631Babcockv. Jackson 631Note 636Gilbert v. Seton Hall University 638

Developments in the United Kingdom 645The Current Law in Canada 646

Tolofson v. Jensen; Lucas (Litigation Guardian of) v. Gagnon . . . . 646Notes 666Somers v. Fournier 667Note 679

Particular Tort Claims 682Products Liability 682Fraudulent or Negligent Misrepresentation 684Economic Torts 684

Inducing Breach of Contract 684Conspiracy 685Passing Off 685

Nuisance and Environmental Damage 685Defamation 686

Australian Broadcasting Corp. v. Waterhouse 686Note 692

Statutory Tort Claims 695

xviii Detailed Table of Contents

Particular Issues in Tort Cases 696Tort Claims Connected to Contracts 696Contributory Negligence and Multiple Tortfeasors 697Interspousal Immunity 697Damages 698Vicarious Liability 698Subrogated Claims 699

Selected Bibliographical References 700

CHAPTER THIRTEEN CONTRACTS AND RESTITUTION 701Introduction 701

Contracts Subject to Internationally Uniform Laws 701Internationally Uniform Choice of Law Rules 702Choice of Law by Arbitrators 703

The Proper Law 703Express Choice of Law 704

Vita Food Products Inc. v. Unus Shipping Co 704Notes 714

No Express Choice of Law 717Richardson International, Ltd. v. Mys Chikhacheva (The) 717Note 723Imperial Life Assurance Co. of Canada v. Colmenares 723Note 728Amin Rasheed Shipping Corp. v. Kuwait Insurance Co 728Notes 737

Multiple Proper Laws 739Limits on the Parties' Freedom To Choose the Proper Law 740

Imposed by Statute 740At Common Law 741

Nike Infomatic Systems Ltd. v. Avac Systems Ltd 741Notes 745

Issues That May Be Referable to a Law Other Than the Proper Law 748Formation 748

Mackender v. Feldia AG 748Notes 754

Contractual Capacity 755Formalities 756

Greenshields Inc. v. Johnston 756Notes 761

Mandatory Rules of Legal Systems Other Than the Proper Law 761Rules of the Lex Fori 762

Avenue Properties Ltd. v. First City Development Corp 763Notes 765Pearson v. Boliden Ltd 766

Detailed Table of Contents xix

Rules of Foreign Laws Other Than the Proper Law 770Law of the Place of Performance 770

Gillespie Management Corp. v. Terrace Properties 770Note 776

The Law of a Friendly Foreign State That theParties Intend To Violate 776

Law of the Place of Contracting 776Other Interested State's Law 777

The Law Governing Claims in Restitution 779Christopher v. Zimmerman 779Note 781

Related Topics in Other Chapters 782Selected Bibliographical References 782

PART SIX PROPERTY

CHAPTER FOURTEEN IMMOVABLES 785Characterizing Immovables 785

Hogg v. Provincial Tax Commission 786Notes 787

Exercising Jurisdiction Over Foreign Immovables 788The Mozambique Rule 788

British South Africa Co. v. Companhia de Mozambique 788Notes 791Hesperides Hotels Ltd. v. Muftizade 792Notes 794A.V. Dicey, The Conflict of Laws 795Notes 796

Exceptions Based on Contract or Equity Between Parties 797Godley v. Coles 797Note 799Ward v. Coffin 799Notes 800Catania v. Giannattasio 801Notes 803

Recognizing Foreign Judgments Affecting Land in the Forum 804Duke v. Andler 804Notes 807Chapman Estate v. O'Hara 808

Choice of Law 812Capacity 812

Bank of Africa v. Cohen 813Note 814

xx Detailed Table of Contents

Formal Validity 814Essential Validity 815Civil Code of Quebec 815

Other Kinds of "Immovables" 815EU Regulation on Jurisdiction and on Recognition and

Enforcement of Judgments in Civil and Commercial Matters . . 816Note 816

Selected Bibliographical References 817

CHAPTER FIFTEEN MOVABLES 819Introduction 819Transfers of Tangible Movables 820

Cammell v. Sewell 820Notes 823Winkworth v. Christie Manson and Woods Ltd 823Notes 829Maden v. Long 830Notes 832

Security Interests in Tangible Assets 833Mobile Goods 834Assignments of Intangible Claims 835

Introduction 835A Unitary or Pluralistic Choice of Law Approach? 835Characterization—Assignment 836Contractual Relations between the Assignor and the Assignee 836Relations between the Assignee and the Debtor

on the Assigned Receivable 837Assignability 837Effectiveness against Third Parties and Priority 838

Determining the Location of the Assignor 839Investment Securities 840

Introduction 840Securities 841Security Entitlements 842

Security Interests in Negotiable Documentary Intangibles 844Selected Bibliographical References 844

CHAPTER SIXTEEN SUCCESSION 847Introduction 847Administration 848

Jurisdiction 849Estates Administration Act 849Estates Act 850Ontario Rules of Civil Procedure 850Ontario Rules of Civil Procedure 851

Detailed Table of Contents xxi

Distinction Between Administration and Succession 851Re Kloebe 852Notes 853Re Wilks 853Notes 855Re Lorillard 855Note 856Jewish National Fund Inc. v. Royal Trust Co 856Notes 860

Recognition of Foreign Personal Representatives 861Canadian Commercial Bank v. Belkin 862Notes 866Re Pemberton 866Notes 871

Succession 871Jurisdiction and Recognition 872

Gillespie v. Grant 873Notes 879

Intestate Succession 879Re Thorn 880

Testate Succession 884Formal Validity 884Essential Validity 885

In the Estate of Groos 885Re Groos 886Notes 888

Personal Capacity 888Interpretation or Construction 888

Re Cunnington 889Notes 890Re MacDonald 890Notes 894

Revocation 895Davies v. Davies 896Note 898

Election 899Re Ogilvie 899Re Allen's Estate 902Note 905

Dependants' Relief Legislation 906Re Urquhart Estate 906Notes 909

The Claims of Foreign States 909Stringam v. Dubois 910Note 910

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In the Estate of Maldonado 911Notes 914

Selected Bibliographical References 915

PART SEVEN FAMILY LAW

CHAPTER SEVENTEEN MARRIAGE AND COHABITATION 919General 919

United Nations, Social Statistics and Indicators,The Worlds Women 2000: Trends and Statistics 919

Marriage 920Glendon, The Transformation of Family Law 920

Constitutional Issues 922Hill v. Hill 922

Validity of Marriage 923Formal Validity: Lex Loci Celebrationis 924

General 924Brook v. Brook 924

Parental Consent 925Subsequent Validation 926

Essential Validity: Lex Loci Domicilii 926General 926

Canada (Minister of Employment and Immigration) v. Narwal... 927Elements of Essential Validity 928

Marriage (Prohibited Degrees) Act 928Family Law Act 929

Same-Sex Marriage 930Public Policy 930

Cohabitation and Civil Unions 931Private International Law Aspects of Cohabitation

Outside Marriage and Registered Partnerships 931Selected Bibliographical References 934

CHAPTER EIGHTEEN DISSOLUTION OF MARRIAGEAND OTHER UNIONS 935

United Nations, Social Statistics and Indicators,The World's Women 2000: Trends and Statistics 935

Constitutional Issues 935Divorcing in Canada: Jurisdiction and Choice of Law Rules 936

Domicile as a Basis for Jurisdiction 936Broadening the Jurisdictional Bases 937

Divorce Act, 1968 937Divorce Act, 1985 938Nicholas v. Nicholas 939

Choice of Law 944

Detailed Table of Contents xxiii

Recognition of Foreign Divorces 944Interprovincial Context 944Foreign Country Decrees 944

Re Edward and Edward 947Divorce Act, 1985 949

Doctrine of Preclusion 951Extra-judicial Divorces 951

Schwebel v. Ungar 952Amin v. Canada (Minister of Citizenship and Immigration) 953

Dissolution of Other Unions 959Vital Statistics Act 959

Spousal Support 960Selected Bibliographical References 961

CHAPTER NINETEEN NULLITY 963Void and Voidable Marriages 963Jurisdiction To Grant a Nullity Decree 963

Domicile 963Savelieff v. Glouchkoff 964Davies v. Davies 967Notes 967

Residence 968Sangha v. Mander 968Notes 968

Place of Celebration of Marriage 968Choice of Law 969

Sangha v. Mander 969Recognition of Foreign Nullity Decrees 972

Jurisdiction of the Foreign Court 972Gwyn v. Mellen 972Notes 977

Defences 977Selected Bibliographical References 977

CHAPTER TWENTY CHILDREN 979Custody 979

North, "Reform, but Not Revolution: Children" 979Constitutional Aspects 980

Division of Powers 980Charter 980

Jurisdiction and Choice of Law 981Jurisdiction 981

Baker v. Arthurs 982Choice of Law 986

xxiv Detailed Table of Contents

Enforcement of Extraprovincial and Foreign Custody Orders 986Children's Law Reform Act 987Gillespie v. Gillespie 988Note 991

International Child Abduction 991Convention of 25 October 1980 on the Civil Aspects of

International Child Abduction 992Thomson v. Thomson 995Finizio v. Scoppio-Finizio 1009Note 1014

Non-Removal Clauses in Final Custody Orders 1015Child Support 1016

Jasen v. Karassik 1017Adoption 1021

Hague Conference on Private International Law 1021The Hague Convention on Intercountry Adoption 1024

Kyaw v. Canada (Minister of Citizenship and Immigration) 1028Selected Bibliographical References 1033

CHAPTER TWENTY-ONE MATRIMONIAL PROPERTY 1035The Common Law 1035

Civil Code of Quebec 1036Matrimonial Property Legislation 1036

Introduction 1036Choice of Law 1038

Tezcan v. Tezcan 1038Notes 1052Matrimonial Property Act 1053Family Property Act 1053Marital Property Act 1054Family Law Act 1054Matrimonial Property Act 1055Family Law Act 1055

Effect of Domestic or Marriage Contracts 1055Family Law Act 1056Bosch v. Bosch 1056Porter-Conrad v. Conrad 1064Notes 1066

Selected Bibliographical References 1067