Supreme Court Clarifies Enforceability of Arbitration Clauses in Insolvency Proceedings

In Peace River Hydro Partners v. Petrowest Corp., the Supreme Court of Canada (SCC) refused to stay a receiver’s civil lawsuit in favour of multiple arbitration proceedings, finding the arbitration agreements were made inoperative by court order to facilitate an orderly and single insolvency process.

This case helps resolve a tension between the expedience of a single insolvency process and the presumptive enforceability of arbitration agreements…

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