Domestic Archives - Arbitration Matters

October 3, 2025October 3, 2025

Manitoba – First CA finding reasonableness standard applies to commercial award appeals – #921

Buffalo Point First Nation v Buffalo Point Cottage Owners Association Inc, 2025 MBCA 72 was the first appellate court to decide that the standard of review set out in Canada (Minister of Citizenship and Immigration) v Vavilov, 2019 SCC 65 for reviews of decisions of administrative tribunals does not apply to appeals of commercial arbitration awards. Instead, the “reasonableness” standard of review, which was established in Sattva Capital Corp. v Creston Moly Corp., 2014 SCC 53 and affirmed in Teal Cedar Products Ltd v British Columbia, 2017 SCC 32, applies. In other words, Vavilov did not overturn Sattva. The fact that domestic arbitration legislation provides an appeal right does not mean that the same “appellate standards” apply in this context. The Court applied the reasonableness review analysis set out in Vavilov, except it found that a greater level of deference might be owed to an arbitrator’s expertise given the purpose of commercial arbitration; namely, giving effect to the parties’ desire for that method of dispute resolution. In other words, this standard of review reflects the reasonable expectations of the parties.

October 3, 2025October 3, 2025

Federal – No Stay Where Case a Proper One for Summary Judgment – #919

In QSL Canada Inc. v. Canpotex Terminals Limited, 2025 FC 1012, the Court dismissed the Defendant’s motion to stay the action in favour of arbitration and granted the Plaintiff’s motion for summary judgment. In so doing, the motion judge analyzed contractual and legal issues that were plainly subject to the parties’ arbitration agreement. This is permitted by the statutory exceptions to stay motions found in the arbitration legislation across the country demonstrating that the policy behind courts respecting parties’ agreement to arbitrate is not absolute. One of the limited exceptions applies to cases where it is found that summary judgment is appropriate. Interestingly, the Defendant also brought the stay motion under the Federal Court general stay provision.

September 16, 2025September 23, 2025

Ontario – A first: arbitration an appropriate alternative to judicial review – #917

BizTech v Accreditation Canada, 2025 ONSC 2689 appears to be the first application of section 7(1) of the Arbitration Act, 1991, S.O. 1991, c. 17(the “Arbitration Act”) , or any comparable provisions in other Canadian arbitration legislation, to stay a judicial review proceeding (para. 151). The decision establishes that staying a judicial review proceeding under section 7(1) of the Arbitration Act, in order to allow an arbitration to proceed, is not at odds with an individual’s right to apply for judicial review, depending on the facts of the case.,

September 16, 2025September 23, 2025

Québec – Arbitration clause in contract of adhesion abusive and null – #916

In Hydro-Québec v. Terrassement St-Louis inc., 2025 QCCA 900, the Court dismissed the demand of Appellant Hydro-Québec’s (“Hydro-Québec”) to refer the file to arbitration. Although the parties were bound by a valid arbitration agreement, the Court confirmed the first instance judge’s conclusion that the arbitration agreement was included in a contract of adhesion and that the arbitration agreement itself was abusive; because of the small amount in dispute, the three-arbitrator panel prescribed by the arbitration agreement resulted in a denial of justice for the Respondent. Therefore, the arbitration agreement was declared null under section 1437 C.C.Q. According to the Court’s reasoning, the arbitration agreement should have been flexible to take into consideration smaller amount disputes by having the option of a sole arbitrator and/or expedited arbitration rules.

July 31, 2025September 16, 2025

Ontario – Mid-arbitration switch to written hearing/refusing to consider submissions procedurally unfair – #915

In Spinney v. Fowlie, 2025 ONSC 2632, the Court set aside an award for want of procedural fairness. The Court found the applicants were denied fair and equal treatment when the Arbitrator decided, partway through a hearing, to switch from an oral to written hearing format and refused to consider the applicants’ written closing submissions. This case should serve as a reminder that even difficult parties are entitled to procedural fairness.

July 31, 2025July 31, 2025

Alberta – No costs to arbitrator sued for alleged bias – #913

Uhuegbulem v Balbi 2025 ABKB 318 is a factually complex dispute in which the plaintiff brought multiple proceedings before the court, and also before the arbitrator, to have the arbitrator removed for reasonable apprehension of bias based upon serious allegations of misconduct. When both those proceedings were not successful, plaintiff brought a separate action against the arbitrator. The defendant arbitrator brought an application in that action in which he argued that the action should be dismissed because (among other things): (1) the arbitrator was protected by arbitral immunity; and (2) the multiplicity of proceedings brought by the plaintiff was an abuse of process. The court could find no precedent for a separate proceeding brought against an arbitrator to have them removed for alleged reasonable apprehension of bias. Ultimately, the arbitrator resigned and the action and application became moot. The parties did not agree on costs and this decision reviews the relevant principles applied by the court to determine costs in this novel proceeding where the arbitrator actively responded to a bias application against him.

July 3, 2025July 4, 2025

Alberta – Court enforces med/arb consent award over bias objection – #910

In Heine v Worsfold, 2025 ABKB 307, the court enforced a consent award rendered in a family dispute over objections that the arbitrator – who had also mediated the parties’ settlement – had demonstrated bias against the Applicant in the mediation. While the case raised a plethora of other issues, at the core were allegations about the mediator/arbitrator’s conduct in the mediation process.

June 9, 2025June 9, 2025

Ontario – Technical requirements for stay are precondition to competence-competence principle – #909

In Sherif Gerges Pharmacy Professional Corporation et al. v Niam Pharmaceuticals Inc. et al., 2025 ONSC 2058, the court granted the applicant leave to bring derivative actions, rather than refusing leave based on the respondents’ argument that leave should be denied because of an arbitration agreement contained in a shareholders agreement. In Peace River Hydro Partners v Petrowest Corp., 2022 SCC 41, the Supreme Court of Canada recognized four technical requirements for a stay of court proceedings in favour of arbitration, one of which is that the party applying for a stay of the court proceedings has not taken a step in the proceeding. Rather than bringing a motion to stay the applicant’s leave request under s. 7(1) of the Arbitration Act, 1991, SO 1991, c 17, the respondents participated in the litigation and only raised arguments about an arbitration agreement in their factum responding to the applicants’ leave application. The court applied Peace River, which would have applied had the respondents brought a stay motion, and found that the respondents did not satisfy the technical requirements for a stay, having taken a step in the court proceeding. Because those requirements are a precondition to a stay, the court did not engage with the respondents’ arguments related to the competence-competence principle, and refused to dismiss the application for leave to bring derivative actions on the basis that the court proceeding should proceed by way of arbitration.

June 9, 2025June 9, 2025

Nunavut – Court grants stay on grounds that “may arbitrate” clause is mandatory – #907

In Nuqsana Inc. v. Tangmaarvik Inland Camp Services Inc. et. al., 2025 NUCJ 13, the Court granted a stay in favour of arbitration, finding the arbitration agreement provided for mandatory arbitration once either party elected to pursue a dispute by arbitration. The Court interpreted the arbitration clause and found that after mandatory “private amicable discussion and negotiation…”, the language “then any of the Parties may refer the Dispute to Arbitration” required arbitration if one party invoked the clause. The stay provision in Nunavet’s arbitration legislation is significantly different than others among common law provinces.

May 9, 2025May 12, 2025

Québec – Court declines to set aside on grounds of infra petita. – #906

In EDT GCV Civil c Société de transport de Montréal, 2025 QCCS 256,the Court dismissed an application to set aside a domestic arbitral award based, among other grounds, on a refusal to exercise jurisdiction. Plaintiff, EDT GCV Civil (“EDT”), contended, among other things, that the arbitral tribunal refused to exercise jurisdiction over certain claims and that this constituted jurisdictional error based on the doctrine of infra petita described especially in international commercial arbitration. In its judgment, the Court regrettably declined to comment on whether this doctrine may apply under Québec law as a ground to set aside a domestic arbitral award.