A bankrupt Canadian oil-drilling company that seeks $318 million from National Iranian Oil Co. can't sue in Ontario because it agreed their contract would be covered by Iranian law

The Court of Appeal for Ontario has overturned a September decision allowing Canadian Triton International Ltd. to proceed with the lawsuit.
The suit was filed on Canadian Triton's behalf by Crown Resources Corp., a Liberian corporation with offices here in the Isle of Man.


A lower-court judge had found that Iran's legal system lacks the independence of Ontario's and former Canadian Triton President Vladimir Katic feared for his life if he returned to Iran.

But the Appeals Court Judge said that Katic has returned to Iran three times to negotiate the difficulties between the parties without suffering any harm.

Crown Resources. a creditor of Canadian Triton, and accounting firm PricewaterhouseCoopers LLP are overseeing the bankrupt estate.

Canadian Triton agreed in 1990 to drill 53 wells in Ahwaz, Iran, for $250 million. The Calgary-based company says it is still owed $17 million and its four rigs, valued at $19 million, were confiscated by Iran's government.