Canadian court orders Nova Chemicals to pay Dow Inc. additional C$1.62B

The Court of King’s Bench of Alberta, Canada has issued a judgment ordering Nova Chemicals Corporation to pay Dow an additional amount of C$1.62B, or $1.2B, in damages. The judgment, signed on June 10, relates to losses Dow incurred from the companies’ jointly owned ethylene asset in Joffre, Alberta, Canada. The award includes interest to April 7, but excludes subsequent interest or legal costs. Payment is anticipated to occur in the fourth quarter of 2025. This latest ruling and award of damages to Dow is in addition to a prior payment by Nova to Dow of C$1.43B, or $1.08B, in damages in 2019 following a June 2018 decision. That decision found Nova had failed to operate the jointly owned ethylene asset at full capacity and had breached contractual obligations since 2001, resulting in reduced ethylene to Dow. On appeal, the court directed that Dow’s damages be recalculated for the period from 2001 through 2012, as well as for the period from 2013 through June 2018, which had not yet been quantified. The judgment is subject to appeal.