International/Model Law Archives - Page 5 of 5

In CC/Devas (Mauritius) Ltd. v. Republic of India, 2022 QCCS 7, Justice Pinsonnault was seized with several questions with respect to two seizures before judgment by garnishment, which were authorized within the context of an application for recognition and enforcement of arbitral awards rendered outside of Québec. What makes this situation of interest is the fact that the seizures before judgment involved assets (money) owned by third parties who were not defendants to the arbitration or named in the awards for which recognition is sought (still pending). They are not implicated at all in the facts alleged in the dispute leading to these awards and they are not targeted in the awards either. Nonetheless, Justice Pinsonnault concluded that the allegations against these third-party corporations (fully owned by the respondent, Republic of India) were sufficient to cause him to confirm the seizure against one of them, although with a revised scope. The seizure against the other corporation was dismissed for other reasons related to the State Immunity Act. The application for recognition and enforcement of the awards remains pending.

My top pick for 2021 stands for the proposition that a foreign award creditor will not be ordered to post security for costs simply by virtue of being a non-resident seeking to recognize and enforce an arbitral award. In China Yantai Friction Co. Ltd. v. Novalex Inc., 2021 ONSC 3571, a three-person panel of the Divisional Court of the Ontario Superior Court of Justice (the “Divisional Court”) granted leave to appeal two interlocutory orders, including the order requiring the foreign award creditor China Yantai Friction Co. Ltd. (“Friction”) to post security for costs in the amount of $76,376.71. This case is important because it provides support for Ontario as an “arbitration-friendly” jurisdiction, and, as the Divisional Court noted, “[13] … it speaks to the response of Canadian courts to international comity and our relationship to the courts of other countries.”

About Arbitration Matters

Arbitration Matters provides brief summaries of recent cases on commercial arbitration issues, as they are released, from across Canada. Therefore, the website is updated frequently. Each Case Note also provides commentary which helps put the case in context. As of Case Note #509 dated July 26, 2021, Lisa C. Munro, has continued the work done by the Honourable Justice Daniel Urbas before his judicial appointment to the Quebec Superior Court. She is assisted by a select group of other experienced arbitration practitioners, who also contribute regularly to the Case Notes.

Tag: International/Model Law

Québec – Enforcement of foreign award against alter egos – #578

John’s 2021 Top Pick: Ontario – China Yantai Friction Co. Ltd. v. Novalex Inc., 2021 ONSC 3571 and 7714 – #566