Pacific Atlantic Pipeline Construction Ltd v Coastal Gaslink Pipeline Ltd
Pacific Atlantic Pipeline Construction Ltd.
Bonatti S.p.A.
Coastal Gaslink Limited Partnership by its General Partner Coastal Gaslink Pipeline Ltd.

Decision Summaries:

  1. January 9, 2024 (2024 ABKB 17):

    • Issue: Application by Pacific Atlantic Pipeline Construction Ltd. and Bonatti S.p.A. (Applicants) to extend an interim injunction pending appeal. The injunction sought to prevent Coastal Gaslink Pipeline Ltd. (Respondent) from drawing on a $117,162,384 letter of credit.
    • Outcome:
      • The court determined that the Applicants failed to meet the test for an injunction pending appeal. They did not establish a strong prima facie case or demonstrate that the balance of convenience favored them.
      • However, the court extended the injunction until January 30, 2024, to allow the Applicants to seek further relief from the Court of Appeal.
    • Relief Denied: Final injunction pending appeal.
  2. November 25, 2024 (2024 ABKB 696):

    • Issue: Costs and damages stemming from the Respondent's successful defense against the injunction application.
    • Outcome:
      • The Respondent was awarded costs totaling $287,816.30 in legal fees and $34,366.16 in disbursements, amounting to a 35% indemnification level.
      • The court referred the Respondent's claim for damages (over $2 million in interest) under the Applicants’ Undertaking as to Damages to a referee for determination.

Final Outcome:

  • Net Result: The Respondent successfully defended against all major applications by the Applicants, including the injunction and appeals. The Respondent was awarded significant costs but must await a referee's decision on damages under the Undertaking as to Damages. The Applicants achieved only limited interim relief to facilitate appeal proceedings.
Court of King's Bench of Alberta
2303 19140
Corporate & commercial law
$ 322,182
Respondent