Summary

41146

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

(Alberta) (Civil) (By Leave)

Keywords

Injunctions — Contract — Interlocutory injunctions — Can beneficiary of an irrevocable standby letter of credit be enjoined from drawing upon letter of credit for a reason other than fraud — If so, what standard of proof is required?

Summary

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Pacific Atlantic Pipeline Construction Ltd. and Bonatti S.p.A. fell into dispute with Coastal Gaslink Pipeline Ltd. regarding work they were contracted to perform in construction of a gas pipeline. Pacific Atlantic Pipeline Construction Ltd. and Bonatti S.p.A. obtained interim interim injunctions preventing Coastal Gaslink Pipeline Ltd. from drawing down $117,162,384 on a Letter of Credit they had furnished to secure performance of their work. A chambers judge denied an application for an interim injunction pending completion of mandatory arbitration. The Court of Appeal denied an appeal. The interim injunctions expired when the Court of Appeal released its judgment. Coastal Gaslink Pipeline Ltd. drew down $117,162,384 on the Letter of Credit.

Lower Court Rulings

December 22, 2023
Court of King’s Bench of Alberta

2303 19140
Application for interim injunction dismissed; interim interim injunction extended
February 29, 2024
Court of Appeal of Alberta (Edmonton)

2403-0002AC
Appeal dismissed
 

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