18(1) The sheriff may seize and sell any equitable or other right, property,
interest or equity of redemption in or in respect of any goods, chattels or
personal property, including leasehold interests in any land of the execution
 The plaintiffs explain their position, at paras. 51-60 of
their factum, as follows:
51. Chevron Canada is a seventh level wholly-owned subsidiary of Chevron
Corp. Chevron Corp. owns 100% of the shares of each descending subsidiary,
which in turn owns 100% of the next descending subsidiary. None of the
intermediary subsidiary companies carries on business. The directors of five of
these six subsidiaries are all employees of either Chevron Corp. or of Chevron Global Downstream LLC, itself a wholly-owned subsidiary of Chevron
Corp. The four directors of Chevron Canada are all employees. It is obvious
that Chevron Canada is wholly-owned and controlled by Chevron Corp. for
the sole benefit of Chevron Corp.’s shareholders. Chevron’s Corporate Structure Chart, attached at Tab C herein, is illustrative.
52. Chevron itself does not carry on any business. Its revenue producing
subsidiaries operate in approximately 60 countries in the world. The vast
majority of its 1,500 subsidiaries, well over 90% are interposed, in layers,
between Chevron and the operating subsidiaries. They carry on no business.
As Chevron’s witness Soler stated when asked how many subsidiaries there
are in the Chevron group:
“It varies literally on a daily basis. I mean, we create and dissolve
companies constantly. But approximately, there are 1500 companies
around the world.”
53. As the Court of Appeal found:
“. . . Chevron’s income is wholly derived from dividends from indirect
subsidiaries that carry out its actual business functions, which include
Chevron Canada.” . . . “Chevron guarantees the debt of its indirect
subsidiaries which in turn furnish capital to Chevron Canada and
[Chevron] has directly guaranteed certain performance obligations of
54. One hundred percent ownership by Chevron over the shares and assets
of Chevron Canada means it has total control over the affairs of its subsidiary. It can mandate an investment, restrict an expenditure, change the
officers and directors and veto any activity.
55. The shareholders, bondholders, bankers and other lenders to Chevron,
consider that all the 1,500 subsidiaries, their shares operations and physical
assets are all assets of the public company, Chevron (stock symbol CVX).
Logically, no shareholder would buy a share of CVX at about USD 100 to only
know that he/she owns only the California bank account of Chevron. No
bondholder or other lender would lend to Chevron believing that, on default,
it could only execute on the bank account.
56. Chevron’s own Annual Reports, 10Ks and public pronouncements promote this belief and confirm its validity.
57. The agencies that rate its debt and its commercial paper program are
in no doubt that the assets of this unified entity belong unequivocally to