Clayton Family welcomes Federal Court of Canada ruling on NAFTA case

OTTAWA, May 2, 2018 /CNW/ - The Clayton Family of New Jersey welcomed a ruling today by the Federal Court of Canada dismissing the Government of Canada's attempt to set-aside a 2015 decision of a NAFTA Arbitration Panel that ruled Canada had violated the Trade Agreement. The Court recognized the Arbitration Panel's finding that, "Canada had not satisfied its obligation to provide the Investors with fair and equitable treatment as contemplated by NAFTA," and that "Canada's treatment of the Investors was discriminatory…"  

The 2015 ruling relates to the Clayton family's investment in a Nova Scotia quarry through its aggregate company, Bilcon. In its merits award, the NAFTA Arbitration Panel found that the evidence showed "the conduct of the joint review was arbitrary," and contrary to the level playing field and fair treatment the NAFTA guarantees to US investors in Canada. The Tribunal also concluded that the Claytons "were encouraged to engage in a regulatory approval process costing millions of dollars and other corporate resources that was in retrospect unwinnable from the outset."

The Nova Scotia government originally invited and encouraged the US-based company to develop a quarry in a rural part of Nova Scotia to create good jobs and economic investment for a region that suffered from chronically high unemployment.  As a result, the Claytons in good faith, from 2003-2007, invested in a sham environmental review process for which the outcome had already been predetermined.

During the critical NAFTA discussions currently underway between Canada and the US, the Claytons' case is a cautionary tale to both US and Canadian investors that expect reciprocal and fair treatment in both countries. Bilcon, a family-owned company that has been in business for more than 50 years, believes the treatment it received was unbecoming of Canada's reputation as a reliable jurisdiction in which to do business. 

The NAFTA Arbitration Panel is now assessing damages owed to the Claytons, valued by independent experts to be in the hundreds of millions of dollars. In its merits Award, the Arbitration Panel encouraged Canada and the Claytons to consider settlement of the claim.

SOURCE Bilcon

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