Bull Riders and Binding Awards: Alberta Court Upholds Colorado Arbitration Decision
Professional Bull Riders, LLC v. Australis Capital Inc., 2025 ABKB 122
This Alberta decision confirms that foreign arbitral awards—especially those from the United States—are likely to be recognized and enforced in Canada, even where local procedural rules might otherwise create obstacles.
Professional Bull Riders, LLC (PBR), a Colorado-based company, settled an arbitration dispute with Australis Capital Inc., an Alberta cannabis firm. As part of the settlement, Australis agreed to pay USD $275,000, and its CEO, Terrence Booth, personally guaranteed payment. When Australis defaulted, PBR sought to enforce the arbitral award in Alberta against both the company and Mr. Booth.
Booth resisted enforcement, arguing that his personal guarantee was invalid under Alberta’s Guarantees Acknowledgment Act, which requires specific formalities. The Alberta Court disagreed. It held that the settlement and guarantee were governed by Colorado law—expressly chosen by the parties—and that the award was enforceable under Alberta’s International Commercial Arbitration Act, which incorporates the New York Convention.
The Court emphasized that Booth was a sophisticated businessman who knowingly agreed to be bound by Colorado’s laws and arbitral processes. Alberta’s guarantee legislation did not apply, nor did public policy justify refusing enforcement.
This case illustrates the importance of clear governing law clauses and confirms Canada’s robust framework for enforcing foreign arbitral awards—essential protections for international businesses.