U.S. Investor Commences NAFTA Chapter Eleven Arbitration Against Government of Canada

NEW YORK, Nov. 10, 2010 /PRNewswire/ -- William Greiner and Malbaie River Outfitters, Inc., announced today that they have initiated arbitration pursuant to Chapter Eleven of the North American Free Trade Agreement (NAFTA) against the Government of Canada for revoking authorizations of commerce to conduct business on various rivers in Quebec.  The $8 million-plus claim alleges unfair treatment of U.S. citizen William Greiner concerning his Canadian-formed company, a lodge and outfitting business which offered Atlantic salmon fishing and hunting in Quebec.  The initiation of arbitration comes closely after the CAD $130 million settlement between the Government of Canada and AbitibiBowater, Inc., in relation to a similar NAFTA arbitration AbitibiBowater commenced earlier this year.  

It is alleged in the Notice of Arbitration that government action was taken discriminatorily, without legal authority or due process and in violation of NAFTA.  The arbitration raises issues regarding the unfair treatment of American citizens investing in businesses in Canada.  The Notice of Arbitration also states that the actions taken by the Quebec Government were done in order to protect investments the Government had made in competing businesses, and that Mr. Greiner was targeted because of his nationality, as well as the nationalities of his clients.

"We have attempted for the past two years to come to an amicable resolution with the Government of Canada, as required under the provisions of NAFTA," says Brett G. Canna, Mr. Greiner's attorney.  "Unfortunately, the Province of Quebec's actions and the Government of Canada's inability to reasonably deal with my client's claims have necessitated the commencement of arbitration.  My client looks forward to proving his claims before a tribunal."

Over the past two years, inquiries have been made on behalf of Mr. Greiner by the U.S. Department of State, U.S. Department of Commerce, U.S. Senator Jeanne Shaheen, and the Office of New Hampshire Governor John Lynch to officials in the Quebec and Canadian Governments in an effort to try to resolve this matter.  

"I look forward to our case moving ahead and am confident that the rule of law will prevail," says Greiner.  "Additionally, I look forward to an explanation by Quebec's Deputy Premier, whose decision it was to revoke my business's Authorizations of Commerce, which caused my business to fold.  The Government of Canada should understand that laws are meant to be followed, and international agreements are meant to be respected."

About Chapter Eleven of NAFTA

Chapter Eleven of NAFTA contains provisions designed to protect cross-border investors and facilitate the settlement of investment disputes.  For example, each NAFTA Party must accord investors from the other NAFTA Parties national (i.e. non-discriminatory) treatment and may not expropriate investments of those investors except in accordance with international law. Chapter Eleven permits an investor of one NAFTA Party to seek money damages for measures of one of the other NAFTA Parties that allegedly violate those and other provisions of Chapter Eleven.  Investors may initiate arbitration against the NAFTA Party under the Arbitration Rules of the United Nations Commission on International Trade Law ("UNCITRAL Rules") or the Arbitration (Additional Facility) Rules of the International Centre for Settlement of Investment Disputes ("ICSID Additional Facility Rules").

About Malbaie River Outfitters, Inc.

Malbaie River Outfitters, Inc., operated a full-service fishing and hunting lodge in Barachois, Quebec.  Nearly all of its clientele came from the United States and Europe, and it was the only Quebec-based outfitting operation to be represented by both Frontiers International and Aardvark, McLeod - the foremost booking operations in the world.  Additionally, it has been featured on ESPN, NESN, OLN, and The Outdoor Channel, as well as in publications including:  The Denver Post, The Houston Chronicle and The San Diego Union Tribune.  Moreover, one of its key employees was the subject of an article in Forbes.  In all, over 30 articles have been written featuring the business, and nearly two dozen television shows aired highlighting Malbaie River Outfitters.

SOURCE William Greiner and Malbaie River Outfitters, Inc.