Is Your Arbitration Agreement Enforceable In A Crisis? A Post-Petrowest Guide For Business Leaders

When the Supreme Court of Canada released its landmark decision Peace River Hydro Partners v. Petrowest Corp., 2022 SCC 41 ("Petrowest"),¹ the court had to make a determination as to the priority of two competing principles: the efficiency of insolvency proceedings and the autonomy of contracting parties to arbitrate disputes. Three years later, the pendulum keeps swinging in favour of efficiency over contractual autonomy. Recent cases show courts increasingly willing to stretch Petrowest, not only across provincial arbitration acts but even into proceedings under the Companies' Creditors Arrangement Act, RSC, 1985, c. C-36 (the "CCAA").

For in-house counsel and business leaders, understanding this evolving landscape is critical. This article cuts through the complexity, analyzing recent rulings to give you a practical playbook. Discover how courts are now applying Petrowest as both a sword and a shield, and learn the key factors that determine if your arbitration