Application of the appropriate means test in an action to enforce a foreign judgment

In Grayson Consulting Inc v Lloyd, 2019 ONCA 79, the Court of Appeal considered when a proceeding would be an “appropriate means to remedy a loss” in the context of a claim commenced to enforce a foreign judgment where a Mareva injunction had also been granted.

Grayson obtained default judgment against the respondent in South Carolina on August 20, 2014 (“SC Judgment”). While certain appeals were taken against certain other defendants in the initial action (final appellate decision took effect on March 29, 2016) no appeal was taken from the SC Judgment. In December 2017, Grayson commenced proceedings in Ontario in respect of the SC Default Judgment and also obtained a Mareva injunction against the defendant.

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Court of Appeal Provides Guidance on Applicable Limitation Period for the Enforcement of Foreign Judgments

In Independence Plaza 1 Associates, LLC v. Figliolini, 2017 ONCA 44, the Court of Appeal for Ontario issued a decision on the appropriate limitation period for the enforcement of foreign judgments and has provided guidance on when the limitation period starts to run. Up until now, there has been conflicting case law among the Superior Courts as to the interpretation of s. 16(1)(b) of the Limitations Act, 2002, but this case finally puts an end to the current debate.

In summary: 

(1)   The basic two-year limitation period under s. 4 of the Limitations Act, 2002 applies to a proceeding on a foreign judgment; and 

(2)   The limitation period begins to run, at the earliest, when the time to appeal the foreign judgment has expired or, if an appeal is taken, the date of the appeal decision.

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Commission de la Construction du Québec v Access Rigging Services Inc., 2010 ONSC 5897 (Enforcement of Foreign Judgments)

In Commission de la Construction du Québec v Access Rigging Services Inc., 2010 ONSC 5897, a single judge of the Superior Court of Justice confirmed that the two-year limitation period under the Limitations Act, 2002, applies to the enforcement of foreign judgments. 

The applicants brought an application in the Ontario Superior Court of Justice to enforce a Quebec default judgment against the respondent in Ontario. The applicant obtained a default judgment against the respondent in November 2005 in Quebec.  In July 2010, the applicant applied to enforce the judgment in Ontario. The respondent took the position that the application was statute barred.

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Commission de la Construction du Québec v Access Rigging Services Inc., 2010 ONSC 5897 (Enforcement of Foreign Judgments)

In Commission de la Construction du Québec v Access Rigging Services Inc., 2010 ONSC 5897, a single judge of the Superior Court of Justice confirmed that the two-year limitation period under the Limitations Act, 2002, applies to the enforcement of foreign judgments. 

The applicants brought an application in the Ontario Superior Court of Justice to enforce a Quebec default judgment against the respondent in Ontario. The applicant obtained a default judgment against the respondent in November 2005 in Quebec.  In July 2010, the applicant applied to enforce the judgment in Ontario. The respondent took the position that the application was statute barred.

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