Food Services of America Inc. v. Pan Pacific Specialties Ltd

Food Services of America, Inc. (Amerifresh) (plaintiff) entered an agreement with Pan Pacific Specialties Ltd (Pan Pacific) (defendant). Amerifresh was an American corporation with offices in Seattle, Washington, and Pan Pacific was a Canadian corporation with offices in Vancouver, British Columbia. The agreement contained an arbitration agreement providing that “Parties agree that all controversies and claims . . . shall be determined by arbitration in accordance with International Arbitration Rules of American Arbitration Association (AAA) and judgment on award rendered by Arbitrators may be entered in any Court having jurisdiction thereof.” The arbitration agreement also provided that the parties waived “any entitlement . . . to rely upon the provision § 36 of the International Commercial Arbitration Act of British Columbia (the Act).” A dispute arose between the parties, and the parties referred the matter to arbitration. The arbitral tribunal entered an award requiring Pan Pacific to pay Amerifresh a specific sum of damages. Amerifresh then filed suit in Canadian courts, seeking an order to enforce the award. Pan Pacific objected, citing § 36 of the act. Amerifresh countered that Pan Pacific had waived any right to challenge the award under § 36 of the act. Pan Pacific countered that the waiver only applied to awards entered pursuant to the arbitration agreement and that the arbitrators did not enter the award pursuant to the arbitration agreement. Pan Pacific argued that the arbitrators made certain errors and those errors rendered the arbitral proceedings not in accordance with the agreement of the parties.