In the recent case of Peace River Hydro Partners v. Petrowest Corp., 2022 SCC 41 (Peace River), the Supreme Court of Canada (the SCC) clarified the circumstances in which an otherwise valid arbitration agreement may be held to be inoperative in the context of a court-ordered receivership under the Bankruptcy and Insolvency Act, R.S.C., 1985, c. B-3 (the BIA).
BACKGROUND
Canada, Arbitration & ADR, Insolvency & Restructuring, Litigation, Blake, Cassels & Graydon LLP, Insolvency, Receivership, Supreme Court of Canada
In this proceeding, the Full Court of the Federal Court considered three main issues:
- whether certain on-lending arrangements gave rise to legitimate tax deductions for interest;
- duties and liabilities of directors who were not directly involved in the impugned transactions; and
- costs payable by a representative where claims were brought against the estate of a deceased director and the representative of that estate, in his own right.
Facts
Australia, Israel, Banking, Company & Commercial, Insolvency & Restructuring, Litigation, The Commercial Bar Association of Victoria, Tax deduction, Federal Court of Australia