Background:
Parrish & Heimbecker Ltd. (P&H) entered into a contract with Jeremy Welter for the sale and delivery of 226.80 metric tonnes of canola. When Welter failed to deliver by the deadline, P&H pursued arbitration under the International Commercial Arbitration Act (ICAA) and the National Grain and Feed Association (NGFA) rules. The arbitration tribunal awarded P&H damages of $106,466.27 CAD, which P&H sought to enforce as a court judgment.

Legal Arguments and Issues:

• P&H's Position: The arbitration award was valid and enforceable under Saskatchewan law.

• Welter's Defense: The contract was unconscionable due to an unfair “acts of God” clause favoring P&H and a damage calculation method that did not require P&H to buy replacement canola at market rates. He argued that enforcing the award violated public policy.

• Court’s Ruling: The court held that unconscionability did not equate to a violation of public policy and ruled that the arbitration tribunal had the jurisdiction to decide such matters. The court had no basis to deny enforcement.

Amount and Costs:

• The court enforced the arbitration award of $106,466.27 CAD in favor of Parrish & Heimbecker Ltd.

• Additional costs under Column 2 were awarded to P&H for the enforcement application.