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
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.
The report of the appeal from this case appears as Case 116.
This case is cited in Case 73.
Additional Information published in later CLOUT issue (on "9 February 2000"):
Abstract published in English:  Model Arbitration Law Quarterly Reports, Vol. 2, issue 1, 9
Text of the court decision published in English:  Model Arbitration Law Quarterly Reports, Vol. 2, issue 1, 13
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