Canadian Consulting Engineer, “No Recourse”
Authored by Debra Curcio Lister, Miller Thomson Partner
The recent decision of the Alberta Court of Appeal in Babcock & Wilcox Canada Ltd. v. Agrium Inc. is important for all parties contracting in the construction industry. The case upheld the general proposition that where a contract requires a dispute to be determined by arbitration, the party seeking a remedy must commence the arbitration proceedings within the applicable timeframe. That timeframe is set out by either the Arbitration Act (which incorporates the limitation periods established by the Limitations Act) or the contract itself. The failure to commence proceedings within the timeframe will result in the party’s loss of its right to pursue a remedy through both the arbitration process and the courts.