In yet another, but not the final, step in the very long-running litigation between KAC, IAC and the Republic of Iraq, the Supreme Court of Canada has held that the enforcement in Quebec of a 2008 judgment of the English Commercial Court ordering Iraq to pay CAD$84 million to KAC is not barred by soveriegn immunity (decision here).
Many on this list will be familar with the facts. After the 1990 invasion of Kuwait, KAC sued IAC in England for conversion of several airplanes. As part of that litigation, KAC was able to claim against Iraq for the costs of the actions that had been brought. This claim flowed from Iraq’s having controlled and funded IAC’s defence, and it was not barred by sovereign immunity in England because it fell within the commercial activity exception. Iraq did not defend this claim and default judgment was granted.