Domestic Archives - Page 2 of 26 - Arbitration Matters

May 9, 2025May 9, 2025

Québec – Clarification on territorial jurisdiction versus arbitral seat under C.C.P. – #904

In BE Franchise inc. v. 9415-1511 Québec inc., 2024 QCCA 1498, the Court of Appeal dismissed the Appellant’s appeal. It confirmed the Superior Court’s ruling that the court’s territorial jurisdiction was the Respondent’s domicile, unless the parties agree otherwise, according to the general territorial jurisdiction’s rules of the Code of Civil Procedure (sec. 41 to 48 C.C.P.) The Court also confirmed that the general territorial jurisdiction rules apply to arbitrations because of the absence of a district designation by the Parties and of the absence an agreement between the Parties or an arbitration rule that would give the arbitrator the jurisdiction to fix the place of arbitration and therefore the Court competent district. The Court also ruled that in Québec, the place where the arbitration award is made cannot be deemed to be the place of arbitration because of the language used in article 642 C.C.P., which is different from the language used in article 31(3) of the Model Law. Therefore, on this issue, Quebec law is different from the Model Law. In the present case, the Court of Appeal ruled that no facts showed that the place of arbitration was the same as the place where the award was rendered.

April 7, 2025April 7, 2025

Ontario – “No appeal” means “no appeal” (and other stuff) – #903

In Joseph Lebovic Charitable Foundation, et al v. Jewish Foundation of Greater Toronto, et al, 2024 ONCA 933,(“Lebovic“) the Court confirmed its prior ruling in Iris Technologies Inc. v. Rogers Communications Canada Inc., 2022 ONCA 634 (“Iris”). In both cases the arbitrator ruled, as a preliminary question, they had jurisdiction to decide the matter before them. In both cases one of the parties unsuccessfully sought a review of that ruling pursuant to s. 17(8) of the Ontario Arbitration Act, 1991. In both cases that party attempted to appeal to the Court of Appeal. And in both cases the motion to appeal was quashed with the Court of Appeal holding that s. 17(9) clearly prohibits any appeal from such a review.

April 7, 2025April 7, 2025

Alberta – Multiplicity of Proceedings No Basis for Stay of Arbitration – #901

In Sivitilli v PesoRama Inc., 2025 ABCA 56, the Court clarified that the grounds for staying an arbitration are exhaustively set out in Section 7(2) of the Alberta Arbitration Act, which does not provide for a stay in the event of a multiplicity of proceedings. Section 6(c) of the Arbitration Act does not provide any further discretion to stay an arbitration. This decision is in line with the Supreme Court of Canada’s decision in TELUS Communications Inc. v. Wellman, 2019 SCC 19.

March 7, 2025March 7, 2025

Québec – Filing an action is not a waiver to arbitrate by Plaintiffs – #900

In Gauvin v. SBYC1935 Inc., 2025 QCCS 11, the Court granted an application by the Plaintiffs to have their own action stayed and referred to arbitration. The Defendant contested the application, arguing waiver of arbitration and tardiness in the filing of the application to stay, as the statutorily prescribed deadline to seek a stay was well past. The Defendant also argued the application was dilatory and an abuse of process by the Plaintiffs. The Court found that there was insufficient evidence of waiver and, noting that the deadline to seek a stay is not strict, it exercised its discretion to relieve the Plaintiffs’ delay.

March 7, 2025October 7, 2025

Ontario – More efficient expert determination process to proceed ahead of litigation – #899

The decision in CLEAResult Canada Inc. v. Santomero, 2024 ONSC 6054 reinforces the principle that courts will generally uphold private dispute resolution mechanisms unless there is prima facie evidence that the process is fundamentally flawed (see para. 67). Here, the court held that the more expeditious, efficient and simple process before an accounting expert (BDO Canada LLP) to determine the Reverse Earn-out Amount in an M&A dispute was to proceed in tandem with other litigation between the parties, and was not to be held up by that litigation.

February 24, 2025February 24, 2025

Ontario – Natural justice does not require second opportunity to make submissions – #897

In Edenrock Holdings Inc. v. Moscone, 2025 ONSC 32, the Court refused to set aside an arbitral award, or grant leave to appeal, with respect to a claimed breach of natural justice, the supposed improper re-opening of earlier decisions, or the alleged apprehension bias of the Arbitrator who issued the Award. The Court found that there was no denial of natural justice when the Arbitrator ruled on a matter in respect of which the Applicants did not make submissions because they argued that the Arbitrator did not have jurisdiction. They argued they should have been given a separate opportunity after the Arbitrator ruled that he had jurisdiction.

February 24, 2025February 24, 2025

Alberta – Arbitration agreement did not bind non-signatory beneficiary under container contract – #896

In Husky Oil Operations Limited v Technip Stone & Webster Process Technology Inc, 2024 ABCA 369, the Court found that a non-signatory beneficiary under a contract was not bound by an arbitration agreement contained in it. The Court found the arbitration agreement did not contain the “clear and explicit language” it deemed necessary to bind the non-signatory.

February 7, 2025February 10, 2025

Alberta – Court rejects Ontario approach to stays of enforcement – #892

In Inter Pipeline Ltd v Teine Energy Ltd, 2024 ABKB 740 (“Inter Pipeline”), the Court set out the three-part test a party must meet to obtain a stay of enforcement of a domestic arbitration award in Alberta, rejecting as “not principled” the two-part test that applies in Ontario. The Court also addressed the argument that refusing a sealing order in these circumstances would put a chill on challenges to arbitral awards.

January 24, 2025January 24, 2025

Ontario – “Finally Resolved” means “Final and Binding” – #890

In Johnson Bros. Corporation v. Soletanche Bachy Canada Inc., 2024 ONSC 6296, the Court found that the parties had contracted out of the right to appeal on the basis that the arbitration agreement provided that disputes were to be “finally resolved” by arbitration.

January 24, 2025January 24, 2025

Ontario – Appeal prohibition applies beyond limits of arbitral appointment applications – #889

In Toronto Standard Condominium Corporation No. 2299 v Distillery SE Development Corp., 2024 ONCA 712, the Court held that there could be no appeal from an order appointing an arbitrator, even though the order did not explicitly indicate that it was made pursuant to s. 10 of the Arbitration Act, 1991, SO 1991, c 17. Section 10(1) provides that the court may appoint an arbitrator on a party’s application if, for example, the arbitration agreement provides no appointment procedure. Pursuant to s. 10(2), there is no appeal from the court’s appointment. Here, the application for an order appointing an arbitrator did not refer to s. 10 of the Arbitration Act but did refer to Rule 14.05 of Ontario’s Rules of Civil Procedure, RRO 1990, Reg 194 (the general rule pertaining to applications and what types of relief may be sought by application, including a determination of rights under a contract). This reference to Rule 14.05 did not engage s. 6 of the Ontario Courts of Justice Act, RSO 1990, c C.43, which sets out the matters over which the Court of Appeal has jurisdiction and provides for an appeal as of right in respect of most final orders of Superior Court judges. The appeal of the appointment order was quashed based on the appeal prohibition in s. 10(2) of the Arbitration Act.