Case number: 28
Article number: model arbitration law / 1(2); 8
Thessaurs issue:
Country of decision: Canada
Year of decision: 1993
Type of decision: Judicial decision

Case 28: MAL 1(2); 8
Canada: Saskatchewan Court of Queen's Bench (MacPherson C.J.Q.B.) 19 March 1993
BWV Investments Ltd. v. Saskferco Products Inc., UHDE-GmbH, et al.
Original in English
Unpublished

The parties entered into a series of contractual relationships concerning the construction of a fertilizer plant for Saskferco. The
subcontract between UHDE and BWV for the construction contained an arbitration clause requiring that the arbitration take
place in Zurich and the interpretation, application and performance of the sub-contract be governed by Swiss law. BWV sued
the defendants in court for monies owing on the contract. UHDE applied to have the proceedings stayed in order that the case
might be resolved by arbitration. In issue was the application of MAL to this dispute.

The court, stating that despite the provision in article 1(2) that only articles 8, 9, 35 and 36 of MAL apply to arbitration
agreements where the place of arbitration is outside the state, found that it could refer to the definitions in MAL by virtue of s.
2(2) of the International Commercial Arbitration Act, Statutes of Saskatchewan 1988-89, c.I-10.2, which enacts MAL. This
section provides that all terms used in the Act will have the same meaning as in MAL. The court found that the agreement in
question was an international commercial arbitration agreement within the meaning of the Act. The court found that the
agreement was void as it conflicted with the Builders' Lien Act, Statutes of Saskatchewan 1984-85-86, c. B-7.1. The
agreement would have rendered inapplicable the rights of several lien holders who would not be involved in an arbitration. The
court declared the arbitration agreement void and did not grant a stay of proceedings.