Overview:
SCMS, a Chilean company, seeks to enforce a CAD $188 million Chilean arbitral award in Ontario against Webuild, despite the original award being against Astaldi S.p.A. SCMS argues that Webuild assumed Astaldi’s liabilities after acquiring certain assets in an Italian restructuring.

Key Points:

• Webuild, an Italian company, contends it did not assume Astaldi's liabilities under the demerger agreement and seeks to stay the Ontario proceedings. It argues that Italian courts should first determine if it inherited Astaldi’s debts.
• SCMS has also initiated enforcement proceedings in Quebec and Delaware, creating the risk of conflicting judgments.
• Webuild raised jurisdictional objections, arguing Ontario is not the appropriate forum (forum non conveniens).

Court’s Decision:

• The Ontario court stayed the proceedings, agreeing that the issue of liability is better addressed in Italy, where the restructuring occurred and relevant legal questions arise.
• The court emphasized judicial efficiency, preventing duplication and inconsistent rulings across jurisdictions.
• SCMS was ordered to pay Webuild’s legal costs of CAD $200,000 immediately.

Conclusion: The stay ensures that Italian courts will resolve whether Webuild is liable for Astaldi’s debts before enforcement can proceed in Ontario.