Friendly judicial challenges from the North: The decision of the Canada Supreme Court in Nevsun Resources Ltd v Araya

Abstract

The recent decision of the Supreme Court of Canada in Nevsun Resources Ltd v Araya and others (International Human Rights Program and others intervening) is worthy of the attention of the common law world. The case interrogated, albeit in relation to the preliminary issue of the striking out of a claim, significant aspects of the relationship between domestic law and customary international law. The doctrine of ‘act of state’ and the nature and extent of the incorporated norms of international law were examined in rich detail and the differing opinions by the Justices present important albeit conflicting guidance for their foreign counterparts. Other apex courts will have to make what they will of the Nevsun decision that it is possible that local corporations can be held liable in domestic law for breach of customary international norms in respect of their acts or those of their subsidiaries in foreign countries.