PROCEEDINGS - Courts - Jurisdiction - Bankruptcy courts - Stays

Law360 Canada (November 10, 2022, 3:14 PM EST) -- Appeal by Peace River Hydro Partners et al (“Peace River”) from a decision of the British Columbia Court of Appeal that dismissed Peace River’s appeal from the dismissal of its application for a stay of proceedings. Peace River, a partnership formed to build a hydroelectric dam in British Columbia, subcontracted work to the respondent Petrowest, an Alberta-based construction company, and its affiliates. The parties executed several agreements that provided for disputes arising from their relationship to be resolved through arbitration. A court-ordered receiver was appointed under the Bankruptcy and Insolvency Act after Petrowest encountered financial difficulties. The Receiver brought a civil claim against Peace River seeking to collect accounts receivable allegedly owed for the subcontracted work. Peace River unsuccessfully applied for a stay of proceedings on the ground that the arbitration agreements governed the dispute. The Court of Appeal upheld the chambers judge’s ruling on the basis that the Receiver was not a party to the arbitration agreements....
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