Carrato v United States of America,

CourtSuperior Court of Justice of Ontario (Canada)
Date17 December 1982
Canada, Ontario High Court.

(Steele J)

Carrato
and
United States of America

State immunity Jurisdictional immunity Public acts of a foreign State Action by United States Government to collect taxes Receiver executing court order without authority from Canadian court Whether acts of receiver done in the course of duties Whether public acts of the United States Government Whether United States had absolute immunity State Immunity Act 198081

Human rights Right of freedom from unreasonable search and seizure Right guaranteed by the Charter of Rights Action by United States Government to collect taxes Receiver executing court order without authority from Canadian court Whether infringement of constitutional right Whether enforceable against a foreign government Canadian Charter of Rights and Freedoms, 1982, Section 8 The law of Canada

Summary: The facts:The plaintiff, a United States citizen and a landed immigrant in Canada, brought an action against the Government of the United States for trespass and for wrongful seizure of business assets. In the United States, a receiver had been appointed by a United States court in an action brought by the Government of the United States to collect taxes from the plaintiff's husband. The receiver, without obtaining any authorization from a Canadian court, seized assets belonging to the plaintiff which were located in Ontario. The Government of the United States moved to have the action dismissed on the ground of sovereign immunity.

Held:The action was dismissed; the United States Government was immune from suit.

(1) The acts of the receiver were acts done in pursuance of the order of the United States court to collect taxes owed to the Government of the United States. To that extent the acts were done within the course of his duties under the order of the court. They were therefore public acts of the United States which was entitled to sovereign immunity in Canada (p. 232).

(2) The guarantees provided in Section 8 of the Canadian Charter of Rights and Freedoms did not apply to the conduct of a foreign government in Canada (p. 232).

(3) The State Immunity Act 198081 had no application in this case, as the writ was issued before the Act came into force. The Act was not to be interpreted as having retroactive effect (pp. 2323).

The following is the text of the judgment of the Ontario High Court:

The defendant obtained an order of the Federal Court in the City of Buffalo in an action to recover income taxes against the husband of the plaintiff in this action. Apparently, the husband and his mother jointly won $500,000 on a Canadian lottery ticket while the husband and wife resided in the United States as American citizens. Subsequently, the husband and the plaintiff and the mother moved to Canada bringing their money with them. The husband and the plaintiff are now landed immigrants in...

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