Lexpert US Guides

Litigation 2017

The Lexpert Guides to the Leading US/Canada Cross-Border Corporate and Litigation Lawyers in Canada profiles leading business lawyers and features articles for attorneys and in-house counsel in the US about business law issues in Canada.

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10 | LEXPERT • December 2017 | www.lexpert.ca/usguide-litigation/ bring everyone to Toronto," he explains. "Interpreters are going to be necessary and an enormous expense, and the court will be hearing about matters of public interest in Israel that no one here knows anything about." Not surprisingly, Schabas prefers the dissent articulated by Justice Sarah Pepall to the majority opinion written by Justice Janet Simmons and concurred in by Justice Eleanore Cronk. "Pepall's dissent demonstrates that there's a real danger in taking jurisdiction when we shouldn't," the lawyer says. "If Canadian courts were to refuse jurisdiction, our press would be less exposed to other countries taking jurisdiction in cases involving them." Haaretz has a print circulation of 70,000 in Israel. But because the evidence established that up to 300 Canadians read the impugned article online and that many of Goldhar's 200 employ- ees in Toronto had heard about it, Schabas did not dispute that the alleged tort was committed in Ontario as well as in Israel. Instead, he argued that his client had rebutted the presumption of jurisdiction because there was no real relationship or only a weak relationship between the subject matter of the litigation and Ontario. But the majority concluded that the action did indeed have a "significant connection" to Ontario. "What is important is that the alleged sting of the article is very much related to how Goldhar conducts business in Canada because the article draws CROSS-BORDER SIGNIFICANCE Paul Schabas Blake, Cassels & Graydon LLP "Goldhar suggests that anyone can be sued anywhere so long as there is at least one reader of the alleged libel in the foreign jurisdiction. … [But the dissent shows] there's a real danger in taking jurisdiction when we shouldn't." 1. Goldhar v. Haaretz.com e Ontario Court of Appeal's split decision in Goldhar v. Haaretz.com, 2016 ONCA 515, may have made it easier for foreign plaintiffs, including those in the US, to sue Canadian publishers, broadcasters and authors outside of Canada. A majority of the three-judge panel in the case ruled that an Israeli newspaper that allegedly defamed a Toronto real estate developer by criticizing his management of an Israeli soccer team could be sued in Ontario. "Goldhar suggests that anyone can be sued anywhere so long as there is at least one reader of the alleged libel in the foreign jurisdiction," says Paul Schabas, a partner in Blake, Cassels & Graydon LLP in Toronto, who represented Haaretz. Schabas postulates the case of an Israeli resident who owns the Toronto Maple Leafs National Hockey League franchise and flies to Canada a few times a year to watch the team play. "e owner would be a celebrity here even if no one ever heard of her in Israel, but on the basis of this judgment, she could sue in Israel, and the Canadian publishers of the alleged libel would have no choice but to defend themselves because any Israeli judgment would likely be enforceable in Ontario," he says. "From the point of view of the communications industry, that's tantamount to interfering with the media, and also represents a large financial burden, especially on smaller companies." But William McDowell, a partner at Toronto litigation boutique Lenczner Slaght Royce Smith Griffin LLP and counsel for plaintiff Mitchell Goldhar, who owns one of Israel's most popular soccer clubs, Maccabi Tel Aviv F.C., doesn't see things that way. "ere's always a burden on the plaintiff to demon- strate that there is a reason for him to vindicate his reputation in his forum of choice," McDowell says. "It's not like we have a completely open season." Still, according to Schabas, it doesn't make practical sense to try the case in Canada. "e evidence is that there are 19 witnesses from Israel to be called by the defendant, and suddenly we have to

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