March 17, 2023
The Ontario Superior Court of Justice has ruled that the families of those killed when the Pasdaran shot down a Ukrainian passenger jet near Tehran cannot seize certain Iranian government property on Canadian soil because the federal government considers those assets the property of the Islamic Republic of Iran protected under international law.
Last year, the provincial court awarded $107 million, plus interest, to the families of five people who died when the plane was shot down three years ago, killing all 176 people aboard, including 85 Canadian citizens and permanent residents.
Iran did not defend itself in court.
Ever since, lawyers representing the families have been looking to seize Iranian assets in Canada for compensation. The lawyers argued that Iran’s rights to diplomatic immunity ended a decade ago when Canada expelled Iranian diplomats from the country.
The families were seeking the court’s permission to seize three buildings in Ottawa and cash in bank accounts maintained by Iran but frozen by Canada.
The Canadian government issued a certificate during a court proceeding in March arguing that under international law, the court doesn’t have the power to allow the families to seize the Iranian assets. The certificate said Iran continues to “enjoy the privileges and immunities,” according to the ruling.
This is the same legal logic used by the United States to stop claimants there from seizing the former Iranian embassy and other real estate Iran owns in the US.
William Pellerin, a Canadian lawyer specializing in sanctions, reviewed the ruling and told CBC News the government went back to a foundational principle of international law.
While Canada has expelled Iranian diplomats, it still recognizes the existence of Iran, Pellerin said, United Nations agreements and international conventions guarantee countries’ sovereignty and authority over their “territory,” he said, and embassies are foreign territory.
More practically, Pellerin said, the government could have been trying to avoid a precedent that could later put Canadian assets abroad in jeopardy.
“Canada is present in a number of countries internationally and may not want to set a dangerous precedent, where its assets or assets of its citizens are under threat,” said Pellerin, who also worked in the past as a lawyer at Global Affairs Canada, the new name for Canada’s foreign ministry.
Since the fall, Canada has imposed sanctions on 84 individuals and 24 entities in Iran – an action which Global Affairs Canada said effectively freezes any assets they may have in Canada.
Global Affairs Canada said Iran “bears full responsibility” for the destruction of the Ukrainian plane and it is taking action to seek arbitration with Iran. If the matter can’t be resolved by the end of June, Canada and other countries can take the case to the International Court of Justice, the department said in a statement.