5 Dec 2024
Inter Pipeline Ltd v Teine Energy Ltd
Case Overview
- Teine Energy Ltd. (Teine) sought to enforce an arbitration award against Inter Pipeline Ltd. (IPL) relating to compensation for crude quality changes under a 2014 Pipeline Connection Agreement (PCA).
- The arbitral tribunal ruled in Teine’s favor. IPL contested the award, alleging legal errors and unfairness, seeking a stay and to set aside the award.
Key Legal Issues and Rulings
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Enforcement vs. Stay:
- Teine argued for Alberta’s tripartite test for stays (serious issue, irreparable harm, balance of convenience).
- IPL favored a modified Ontario test that excludes irreparable harm.
- The court applied Alberta’s tripartite test, finding no irreparable harm to IPL, which could access financial resources to manage the award. The balance of convenience favored Teine, allowing enforcement.
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Sealing Order:
- IPL sought to seal the entire arbitration record, citing confidentiality of proprietary and third-party information.
- Teine agreed to protect third-party confidentiality but opposed full sealing.
- The court granted a limited sealing order, protecting only third-party confidential data. A redacted version of the arbitration record would be publicly accessible.
Outcome
- The court denied IPL’s stay application, allowing Teine to enforce the award.
- A sealing order was granted but limited to protecting third-party confidential information, with redacted records available for public scrutiny.
- The exact amount for onetary award remains unspecified