Dentons Canada is delighted to announce an important achievement for our clients, two related Canadian and Ecuadorian mining companies, in a confidential international arbitration involving a royalty buyback right valued at over C$500M (just under US$400M). Our cross-border team, led by Michael Schafler of Dentons Toronto, secured a decisive win for our clients in the arbitration, which was governed by British Columbia’s International Commercial Arbitration Act and the VanIAC Rules.
Key details of the case:
High stakes, even higher rewards: The dispute revolved around the interpretation of several complex contracts dating back nearly 25 years and whether the clients had the right to buy back half of a mining royalty. The sole arbitrator ultimately accepted our clients’ interpretation of these agreements, confirming that the buyback right was enforceable. This avoided having to pay significant future royalty payments.
Global collaboration: This victory underscores Dentons’ commitment to seamless collaboration across Canada. Michael Schafler (Toronto), Rachel Howie (Calgary), and Emily McMurtry (Ottawa), joined forces to leverage our national strength in international mining arbitrations. Tapping into Dentons’ unparalleled global reach, our Canadian team worked closely with Jorge Paz and Maria Heredia of Dentons Quito in securing the win, particularly with respect to issues arising under local Ecuadorian law.
Efficiency exemplified: Despite contested issues of evidence, technical expert opinions on foreign law, and the overall complexity of the matter, the parties received the final award resolving the dispute within one year of referring the matter to arbitration. The swift resolution of this high-value, cross-border dispute involving intricate contracts executed many years ago demonstrates Dentons’ exceptional efficiency in dispute resolution.
Celebrating success, defining excellence: This success not only marks a significant triumph for our clients, but it also highlights Dentons’ commitment to excellence in navigating intricate legal landscapes. Our ability to efficiently resolve complex, high-value disputes is a testament to the collaborative spirit that defines Dentons globally.
For parties seeking unparalleled legal representation in cross-jurisdictional mining arbitrations, Dentons Canada stands ready to deliver exceptional results.