NAFTA - Chapter 11 - Investment

Cases filed against the Government of Canada

Westmoreland Coal Company v. Government of Canada (2022)

Claimant

Westmoreland Coal Company is a company that was incorporated in the State of Delaware in the United States. It used to own Prairie Mines & Royalty ULC, a company incorporated in Alberta, which owned and operated coal mines in Alberta.

Articles

  • CUSMA, Annex 14-C
  • NAFTA, 1102 (National Treatment)
  • NAFTA, 1105 (Minimum Standard of Treatment)
  • NAFTA, 1110 (Expropriation and Compensation)

Damages claimed

The Claimant did not specify the amount of damages claimed.

Status

Won. The Tribunal accepted Canada’s argument that it lacked jurisdiction over the dispute on December 17, 2024. The Tribunal awarded Canada US$215,950 for its arbitration costs and CA$1,461,766 for its legal costs.

Arbitration rules

United Nations Commission on International Trade Law (UNCITRAL)

Summary

Procedural history

On June 30, 2022, Canada received a Notice of Intent to Submit a Claim to Arbitration from Westmoreland Coal Company. On October 14, 2022, Westmoreland Coal Company filed its Notice of Arbitration, commencing the arbitration process pursuant to CUSMA (Canada-United-States-Mexico Agreement) Annex 14-C and the NAFTA (North American Free Trade Agreement). The parties exchanged written pleadings and the Tribunal held a hearing on jurisdiction on May 2 and 3, 2024. In its Award dated December 17, 2024, the Tribunal accepted Canada’s argument that it lacked jurisdiction over the dispute and dismissed the case. In particular, the Tribunal found that the claim fell outside the limitation period set out in NAFTA Articles 1116(2) and 1117(2) and that the Claimant did not have a “legacy investment” as required by CUSMA Annex 14-C.

Factual overview and nature of the claim

Westmoreland Coal Company alleges that the Province of Alberta’s 2015 Climate Leadership Plan (CLP), which sought to phase out all emissions from coal-fired electricity generation by 2030, reduced the lifespan of Westmoreland Coal Company’s mines in Alberta and treated Westmoreland Coal Company unfairly.

Westmoreland Coal Company further alleges that Alberta has treated it unfairly and in a discriminatory manner by providing transition payments to three coal-fired generating unit owners impacted by the CLP, and not providing such a payment to Westmoreland Coal Company for its coal mine assets.

Westmoreland Coal Company also alleges that Alberta’s above-mentioned measures, combined with carbon pricing regulations enacted by Alberta, deprived it of the value of the mines, constituting a violation of the expropriation obligation.

The Tribunal agreed with Canada that it lacked jurisdiction over the claim on December 17, 2024. The Final Award may not be appealed.

Legal documents

Documents related to this case can be viewed at the website of the International Centre for Settlement of Investment Disputes.

Copies of all legal documents posted have been prepared in a language of operation of the Tribunal or Court in question. The Government of Canada has not modified or changed them in any way. As such they have not been translated from the original.

The Government of Canada is not responsible for the accuracy, reliability or currency of the information supplied by external sources. Users wishing to rely upon this information should consult directly with the source of the information. Content provided by external sources is not subject to official languages, privacy and accessibility requirements.