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ARTICLE · 15 FEBRUARY 2023

Top Arbitration Cases Of 2022: Peace River Hydro Partners v. Petrowest Corp

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Peace River subcontracted construction work to Petrowest on a hydroelectric dam project in B.C. The relevant contracts contained various arbitration agreements.

CanadaLitigation, Mediation & Arbitration
James Plotkin
James Plotkin
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Supreme Court of Canada refuses to enforce an arbitration agreement where it risked prejudicing creditors in insolvency proceedings

Facts

Peace River subcontracted construction work to Petrowest on a hydroelectric dam project in B.C. The relevant contracts contained various arbitration agreements. Petrowest became insolvent and was placed under receivership. The receiver commenced a court claim against Peace River for sums allegedly owing for completed work. Relying on the arbitration agreements, Peace River brought a motion before the B.C. Supreme Court to stay the receiver's claim in favour of arbitration. The Court dismissed the stay. The B.C. Court of Appeal affirmed the decision.

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