Foreign Judgments

2 (1) Where a judgment has been given in a court in a reciprocating state, the judgment creditor may apply to any court in Ontario having jurisdiction over the subject-matter of the judgment, or, despite the subject-matter, to the Superior Court of Justice at any time within six years after the date of the judgment to have the judgment registered in that court, and on any such application the court may, subject to this Act, order the judgment to be registered. R.S.O. 1990, c. R.5, s. 2 (1); 2006, c. 19, Sched. C, s. 1 (1).

"The principle of territorial sovereignty traditionally operated to prevent foreign judgments from having any effect in Canada. However, this principle must now operate in tandem with the principle of international comity, particularly in the area of commercial/secured transactions.

Under Ontario law, a judgment in personam obtained in a U.S. court can be enforceable if certain criteria are met under the common-law scheme.

An Ontario court will enforce a final and conclusive foreign judgment for a specified sum as long as:

1. It is not impeachable as void or voidable under the internal laws of the foreign state;
2. The court rendering judgment had jurisdiction, as recognized under Ontario law;
3. The judgment was not obtained by fraud or in a manner contrary to natural justice;
4. The enforcement of judgments would not be inconsistent with public policy as understood under Ontario law;
5. The enforcement does not constitute, directly or indirectly, the enforcement of foreign revenue law or penal law; and
6. There has been compliance with the Ontario Limitations Act (R.S.O. 1990, C.L.15, as amended S.O. 2002, c.24) which stipulates that an action to enforce a foreign judgment must be commenced within 6 years from the date of the foreign judgment. Note, as well, the Supreme Court of Canada case Morguard Investments Ltd. v. De Savoye (1990), 76 DLR (4th) 256 revolutionized the common law of recognition and enforcement and held that provincial judgments should be given force in another province as long as the court rendering judgment had valid jurisdiction via the ""real and substantial connection"" test. However, although some lower courts in Canada have applied the reasoning in Morguard to foreign (non-sister province) judgments, the Supreme Court has yet to rule on whether this principle is truly applicable to non-Canadian judgments."