Case number: 112
Article number: model arbitration law / 8(1)
Thessaurs issue:
Country of decision: Canada
Year of decision: 1994
Type of decision: Judicial decision

Case 112: MAL 8(1)
Canada: Alberta Court of Queen's Bench and Alberta Court of Appeal 13 July 1994 and 4 October 1994
Kvaerner Enviropower Inc. v. Tanar Industries Ltd.
Published in English: 157 Alberta Reports, 363; and [1994] 9 Western Weekly Reports, 228

Kvaerner, a contractor, applied for a stay of the court proceedings initiated by Tanar, a subcontractor, and for submission of the dispute between them and a third party, which had to pay performance bonds issued in favour of Tanar, to arbitration.

The court stayed the proceedings and referred the dispute between Kvaerner and Tanar to arbitration. While the court considered that the performance bonds in favour of Tanar did not constitute an agreement between the third party and Kvarner to arbitrate their differences, it stayed the court proceedings as between Kvaerner and the third party pending arbitration of the dispute between Kvaerner and Tanar. The Court of Appeal confirmed the decision of the court of first instance.