Key Issues:

1. Whether the Alberta Court of Appeal has jurisdiction under section 65.1 of the Supreme Court Act to issue an injunction or stay.
2. Whether Pacific Atlantic Pipeline Construction Ltd and Bonatti S.P.A. (Applicants) met the legal test for granting an injunction or stay.

Decision Highlights:

• Jurisdiction: The Court held that it does not have jurisdiction to grant the requested injunction because:

  • Section 65.1 authorizes "stays" but does not extend to mandatory and prohibitive injunctions as sought by the Applicants.
  • The Applicants' request went beyond a traditional stay by seeking to restrain Coastal Gaslink Pipeline Ltd (Respondent) from drawing on a letter of credit.

• Merits of the Injunction:

  • The Applicants failed to meet the three-part test for an injunction:
    1. Serious Issue to Be Tried: The Court found no strong prima facie case or serious issue requiring intervention, as the underlying contractual terms were clear and not misapplied.
    2. Irreparable Harm: The alleged harm to the Applicants (e.g., financial and reputational loss) was speculative and insufficient to justify intervention.
    3. Balance of Convenience: The balance favored the Respondent, which had been delayed in exercising its contractual rights.

• Public Interest: The Court noted that letters of credit are critical in commercial transactions, and undue interference risks undermining their utility.

Outcome:

• The application for a stay and injunction was dismissed.
• No interim relief was granted, as the Court lacked jurisdiction for such remedies.
• There was no mention in the decision of damages or a monetary award being granted. The case primarily focused on injunctive relief.