NAFTA - Chapter 11 - Investment

Cases filed against the Government of Canada

Centurion Health Corporation v. Government of Canada

Claimant

Melvin J. Howard is a U.S. citizen who claimed to own and control Centurion Health Corp. (“Centurion”), an alleged Delaware corporation, and the Howard Family Trust (“HFT”), an alleged Canadian family trust. Mr. Howard alleged that Centurion and HFT owned and controlled Regency Hills Health Centre, Inc., an alleged British Columbia corporation.

Articles

  • 1102 (National Treatment)
  • 1103 (Most-Favoured Nation Treatment)
  • 1105 (Minimum Standard of Treatment)
  • 1110 (Expropriation)
  • 1502(3)(a) (Monopolies and State Enterprises)
  • 1503(2) (State Enterprises)

Damages claimed

$160 million USD

Status

Terminated by Tribunal for non-payment of Tribunal fees by Claimant.

Arbitration rules

UNCITRAL

Summary

Procedural history

The Claimants submitted a Notice of Intent to Submit a Claim to Arbitration on July 11, 2008, followed by a Notice of Arbitration on January 5, 2009, and a revised Statement of Claim on February 2, 2009. On April 29, 2010, Canada filed a Motion on Termination and Costs, requesting pursuant to Articles 38, 40, and 41 of the UNCITRAL Arbitration Rules that the Tribunal terminate the arbitration because the Claimants had failed to make the required deposit to the Tribunal. Canada also requested that the Tribunal award Canada its costs in the arbitration and its legal fees.

Factual overview and nature of the claim

The Claimants alleged that Canada breached its obligations under NAFTA Chapters 11 and 15. In particular, the Claimants alleged that they were denied access to Canada’s “monopoly infrastructure and network in health care”, that they continuously ran into “roadblocks” in their efforts to construct a surgical facility in British Columbia, and that they had their medical technology expropriated in Alberta.

Decision

On August 2, 2010, the Tribunal terminated the arbitration pursuant to Article 41(4) of the UNCITRAL Arbitration Rules as a result of the Claimant’s failure to pay its share of the deposit. The Tribunal also ordered the Claimant to pay to Canada the costs of the arbitration proceedings in the amount of $37,905.45 USD and disbursements in the amount of $4,667.99 CAD. The Tribunal denied Canada’s request for legal fees.

Legal documents (all documents are in pdf)

This case was governed by the arbitral rules of the United Nations Commission on International Trade Law.  Additional documents related to this case can be viewed at the website of the Permanent Court of Arbitration.

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. They are provided in Acrobat (pdf) files. To view or download pdf files you need Adobe® Acrobat® Reader™ a free software that you can download from the web.

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