Arbitration Matters

March 11, 2026March 11, 2026

B.C. – Mistake in weighing evidence not error of law – #939

In CIMIC Morningstar Investments Ltd. v. Chandos Construction Ltd., 2026 BCCA 2, the Court denied leave to appeal pursuant to s. 59 of the Arbitration Act, S.B.C. 2020, c. 2 (the“Act”) with respect to alleged errors of law in an arbitral award concerning liability and damages for construction delays. The arbitrator found that the applicant/owner, CIMIC Morningstar Investments Ltd. (“CIMIC”), had materially contributed to delay through design changes and late approvals and awarded the general contractor $6.5 million in damages, interest, and costs. The Court ruled that none of the four grounds alleged by CIMIC raised questions of law. What CIMC argued were the arbitrator’s misapprehensions of the evidence going to the outcome (which this Court has found constitutes an error of law, most memorably in Escape 101 Ventures Inc. v. March of Dimes Canada, 2021 BCCA 313) was actually a challenge to the arbitrator’s weighing of the evidence.

March 11, 2026March 11, 2026

Northwest Territories – Peace River Analogized in Oppression-Driven Disclaimer of Arbitration – #938

In TSA CORPORATION et al v KPMG LLP, 2026 NWTSC 2, the Court approved a Receiver’s request to disclaim arbitration agreements between companies in receivership (the “LKDFN Companies”) and KPMG, which the LKDFN Companies’ former CEO had engaged to provide accounting services and tax advice. The Receiver had been appointed to facilitate the LKDFN Companies’ recovery from oppression at the hands of their former CEO. Relevant statutes, and the Receiver’s appointment order, authorized a broad range of potential remedies, expressly including the power to disclaim contracts with third parties. Reasoning by analogy to Peace River Hydro Partners v. Petrowest Corp., 2022 SCC 41, the Court approved the Receiver’s request because “not doing so would compromise the fair and orderly correction” of “a scenario of exploitation, unfairness, and the obliteration of autonomy.” The Receiver’s disclaimer rendered arbitration agreements between the LKDFN Companies and KPMG unenforceable under the Arbitration Act, SNWT 2022, c 14. As a result, the Court denied KPMG’s application to stay derivative actions brought against it.

The social context of this case was key. The LKDFN Companies’ former CEO had “knowingly breached his fiduciary duties to the LKDFN Companies, including failing to disclose his own interests, which were significant, and he caused them to enter into agreements, transactions, and governance structures which were unfair and prejudicial.” The LKDFN Companies had been organized to serve economic and other needs of the First Nation, infusing this case with the “special social context attendant to the exploitation of a vulnerable indigenous group.” This context situated the case in the process of truth and reconciliation with Canada’s First Nations, including the interpretive lens of federal and territorial legislation implementing the United Nations Declaration on the Rights of Indigenous Peoples.

March 11, 2026March 11, 2026

Ontario – Parties must pay arbitrator as part of good faith contractual performance – #937

In Ongko (Boswell) v. Ongko, 2025 ONSC 7235, the applicant was precluded from bringing her set-aside application. She was not only time-barred from doing so because she commenced the application after the statutory 30-day period, but the Court also held that it lacked jurisdiction to set aside an award and to remove an arbitrator for bias where a party fails to comply with the arbitrator challenge requirements of the Arbitration Act, 1991, SO 1991, c 17 and the terms of their arbitration agreement, which provided for a mandatory challenge process if either party had concerns about the arbitrator’s neutrality. The applicant elected not to proceed with the challenge before the arbitrator after she refused to pay the arbitrator’s fees. She then chose not to participate in the arbitration. The Court made clear that parties must continue to pay the arbitrator’s fees to complete the contractually agreed dispute resolution process. It also found that there was also no procedural unfairness stemming from her own choices.

February 12, 2026February 12, 2026

Ontario – Court dismisses review of leave decision finding no extricable error of law – #936

In Hilmer Motorsport GmbH v. Mason, 2025 ONCA 875, the Court dismissed an appeal from a summary judgment enforcing a German default judgment in which the appellants were found to have breached an agreement between the parties. The decision addresses the intersection between foreign judgment enforcement and arbitration agreements. The agreement provided that any dispute between the parties was to be resolved by arbitration and the appellants contended that it would therefore be against public policy to recognize and enforce the judgment of the German court. In its ruling, the Court held that the mere existence of an arbitration clause does not, without more, deprive a foreign court of jurisdiction or render its judgment unenforceable in Ontario. The appellants had failed to defend the German action and could not resist judgment on the basis of the arbitration agreement at the enforcement stage.

February 12, 2026March 11, 2026

Ontario – Anti-suit injunction granted restraining foreign arbitration by affiliate – #935

In Lochan v Binance Holdings Limited, 2025 ONSC 6493, the Court granted an anti-suit injunction that prevents Binance Holdings Limited (“Binance”) and affiliates from pursuing arbitration in Hong Kong against the representative plaintiffs in a certified class action in Ontario. The Court determined that Binance was using an affiliated entity, Nest Services Limited (“Nest”), as an alter ego to bypass previous Ontario rulings that found the arbitration clause in its contract with members of the class to be unconscionable and void.

February 12, 2026March 4, 2026

British Columbia – On appeal, question of procedural fairness is question of law – #934

In Green Light Solutions Corp. v Kern BSG Management Ltd., 2025 BCCA 408, the applicant sought leave, pursuant to s. 29 of the Court of Appeal Act, S.B.C. 2021, c.6, to vary the order of a chambers judge, who had denied it leave to appeal the costs portion of a final award. Applying s. 59(2) of the British Columbia Arbitration Act, SBC 2020 c. 2, the chambers judge found that the applicant had failed to identify a question of law. The applicant’s complaint was that there was a breach of the parties’ right to make submissions on costs before the award was made. The Court of Appeal overturned that decision on the basis that the proposed appeal raised a question of procedural fairness, which is a question of law. Moreover, the legislation permits questions of law based on an allegation that a party was not given the opportunity to present its case to be raised in both an appeal and a set-aside application.

January 30, 2026January 30, 2026

British Columbia – Court dismisses review of leave decision finding no extricable error of law – #933

In Bear Mountain Resort & Spa Ltd. v. Ecoasis Resort and Golf LLP, 2025 BCCA 368, the B.C. Court of Appeal dismissed a review application from a Chambers Judge’s decision refusing leave to appeal an arbitral award under subsection 59(4) of B.C.’s Arbitration Act, SBC 2020, c 2 [Act]. The Court found no error in the Chambers Judge’s conclusion that the eight grounds the applicant raised concerned questions of mixed fact and law, which cannot be appealed under the Act.

January 30, 2026February 4, 2026

Alberta – Tribunal not functus officio when issuing award after final award – #932

In Lawrence v. Wood, 2025 ABKB 594, the Court dismissed an application for leave to appeal an award of an arbitral tribunal, or alternatively, to set it aside. The Applicants argued that that the tribunal was functus officio and lacked jurisdiction when it issued an award stating that a prior award was to be paid jointly and severally. The Court disagreed and held that the tribunal still had jurisdiction to make this clarification because this issue was dealt with “implicitly” in the first award, or alternatively, it was a new issue that was not before it when the first award was issued.

January 19, 2026January 19, 2026

Québec – New small claims arbitration in Québec – #931

In Multi Chariots Élévateurs inc. v. 9191-0216 Québec inc., 2025 QCCQ 6048, the Court granted the Defendant’s application to annul the arbitration award rendered in a small claims arbitration process due to non-compliance with the applicable procedure and violation of the Defendant’s right to be heard; the Defendant had no notice of the arbitration. Small claims arbitration in Quebec, as discussed in this decision, is a new procedure resulting from the coming into force of the Regulation respecting mediation and arbitration of small claims, C-25.01, r. 0.6.1. This regulation stipulates that a claim of less than $5,000 brought before the Court of Quebec Small Claims Division shall be referred to arbitration (at no cost) after mandatory mediation has failed to resolve the matter. The Rules provide for a specific arbitration procedure, requiring the state- appointed arbitrator to expressly validate the parties’ consent to proceed by way of arbitration, or the matter will proceed in the courts.

December 19, 2025December 19, 2025

Chris Reflects (2025) – On Court finding that 30-day deadline under Arbitration Act applies to cross-appeals – #930

In Sinclair v. T.D.M.C. Holdings Ltd., 2025 BCCA 402, the Court held that the 30-day time limit in s. 60(1) of the Arbitration Act, SBC 2020, c. 2 (“Arbitration Act”) applies to all appeals from arbitral awards, including cross-appeals. The Court quashed the application of the respondents (“TDMC”) for leave to file a cross-appeal outside that statutory period. It rejected an interpretation that would have allowed reliance on the 15-day cross-appeal timeline in the Court of Appeal Rules(the “Rules”). In doing so, the Court underscored the jurisdictional primacy of the Arbitration Act over procedural rules but urged the Legislature to consider amending the Arbitration Act to provide for a separate timeline to file a cross-appeal to address practical concerns.