In Foodies Curry & Shawarma Inc v Royal Paan Leasing Ltd, 2026 ONCA 26, the Court set aside a judgment of the Superior Court of Justice on grounds of procedural fairness. The judgment dismissed an application for specific performance of an asset purchase agreement but granted restitution on grounds of unjust enrichment. However, the restitution claim was not expressly requested in the Notice of Application and was raised for the first time at the oral haring. Based on the application judge’s interventions at the hearing, the defendant believed the restitution claim to have been foreclosed and made no submissions on the matter. In the circumstances, the Court held that the defendant was deprived of its right to know the case it had to meet and to meet that case.
Continue reading “Ontario – Procedurally unfair to rule based on a claim that appeared foreclosed – #941”Ontario – Application to set aside award in baseball arbitration denied – #940
In Stronach v. Stronach, 2025 ONSC 7158, the Parties, who had been embroiled in years of acrimonious litigation related to their family enterprise, agreed to a settlement that included a final-offer (or “baseball”) arbitration to determine the value of the Respondents’ agreed share of the businesses. The Applicants later challenged the arbitral award, which had been rendered by a prominent business valuator. They argued, among other things, that it should be set aside because the Arbitrator relied on an expert report, which was outside his jurisdiction because it did not comply with the valuation standards agreed to by the Parties. The Application Judge dismissed the application, describing it as “very weak” on the purported jurisdictional issue. In substance, he viewed it as a challenge to the merits of the award where there was no appeal. In any event, the Application Judge held that the Applicants had “agreed” to admit the impugned expert report into evidence to challenge its weight. By not objecting to the report’s admissibility at the hearing or to the Arbitrator’s authority to receive it, the Applicants waived their ability to later raise the jurisdictional argument on a setting aside application.
The case raises a number of procedural fairness issues, but this summary will focus on jurisdiction and waiver issues.
Continue reading “Ontario – Application to set aside award in baseball arbitration denied – #940”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.
Continue reading “British Columbia – On appeal, question of procedural fairness is question of law – #934”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.
Continue reading “Québec – New small claims arbitration in Québec – #931”Timothy Reflects (2025) – The (Sometimes) Long Tail of Disclosure Disputes – #928
Document production is a third rail to many arbitration practitioners, and not a likely topic for an annual reflection blog! The risk of provoking memories (possibly distant, but still visceral) of sifting through dusty boxes or their digital equivalent may be, for many potential commentators, too great. Privilege logs, relevance, and redactions, oh my!
Continue reading “Timothy Reflects (2025) – The (Sometimes) Long Tail of Disclosure Disputes – #928”Ontario – Party bound by rule change despite not agreeing to it – #920
In InFrontier AF LP v. Rahmani, 2025 ONSC 3968 (CanLII) (“InFrontier”), the Court heard an application to recognize and enforce an award and considered the effect of amendments to the arbitral rules chosen by the parties in their arbitration agreement. The parties had agreed to settle disputes by arbitration seated in Dubai using a specific set of arbitration rules (the “OldRules”) administered by a specific arbitral institution. Before the arbitration commenced, a change in Dubai law led to those rules being replaced by a new set of rules (the “New Rules”) to be administered by a different institution. As described below, there was a degree of connection between the Old Rules and the New Rules and between the two institutions. The arbitration proceeded under the New Rules. Mr. Rahmani, the Respondent in the arbitration, unsuccessfully challenged the arbitrator’s jurisdiction to proceed under the New Rules. He was also unsuccessful in the arbitration. InFrontier applied for recognition and enforcement of the award in Ontario. Mr. Rahmani opposed the application, arguing: (1) the composition of the tribunal and the arbitration procedure were not in accordance with the arbitration agreement because the arbitration proceeded, without his agreement, under the New Rules, (2) recognizing and enforcing the award would be contrary to public policy in Ontario because it was obtained as a result of a retroactive amendment to the arbitration agreement without the parties’ consent, and (3) he was unable to present his case during the arbitration. The Court rejected all his arguments.
This case summary deals only with Issue 1.
Continue reading “Ontario – Party bound by rule change despite not agreeing to it – #920”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.
Continue reading “Ontario – Mid-arbitration switch to written hearing/refusing to consider submissions procedurally unfair – #915”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.
Continue reading “Ontario – Natural justice does not require second opportunity to make submissions – #897”B.C. – Arbitrator Properly Appointed Despite No Signed Agreement – #881
In Pomerleau Inc. v 4HD Construction Ltd., 2024 BCSC 1973, the Court addressed two petitions. The first, by 4HD (the claimant/respondent by counterclaim in the arbitration), sought a ruling that the arbitrator had not, in fact, been appointed and declaring the award to be void or, alternatively, an order that the arbitrator be removed as arbitrator and the award set aside on the basis of a reasonable apprehension of bias. The second, by Pomerleau (the respondent/counterclaimant in the arbitration), sought recognition and enforcement of the award. The Court dismissed the first petition and granted the second. The arbitrator ruled that he had been appointed based on an email sent to him by 4HD advising him that he had been jointly selected as arbitrator and the had parties participated in the arbitration, even though no arbitration agreement was ever signed. The arbitrator issued an award dismissing the claims based on the claimant’s failure to prosecute the arbitration. The Court found that the arbitrator was correct that he had been properly appointed. The fact that the arbitrator was owed outstanding fees (only a few thousand dollars) by the claimant at the time he ruled on his appointment was insufficient to give rise to a reasonable apprehension of bias to justify setting aside the award.
Continue reading “B.C. – Arbitrator Properly Appointed Despite No Signed Agreement – #881”Ontario – Missed Opportunity re Implications of Set-Aside Test for Procedural Unfairness? – #850
In Vento Motorcycles, Inc. v. United Mexican States, 2024 ONCA 480 (CanLII) (for ease of reference, “Vento-CIPPIC“), the Court addressed The Samuelson-Glushko Canadian Internet Policy and Public Interest Clinic’s (“CIPPIC’s”) application to intervene in Vento’s appeal of last year’s Ontario Superior Court of Justice’s dismissal of Vento’s application to set aside a 2020 international arbitration award [Vento Motorcycles, Inc. v. United Mexican States, 2023 ONSC 5964 (CanLII), (“Vento”)]. That and related decisions were discussed in several Arbitration Matters previous blogs, including 810, 796, 572, and 807. CIPPIC’s application was unsuccessful. The Court rejected its application for three reasons: (1) it hadn’t shown a sufficient link between its expertise and the issues in the appeal or its unique perspective; (2) the higher threshold to be granted leave to intervene in a private dispute; and (3) the risk CIPPIC’s intervention would unjustifiably expand the scope of the appeal.
Continue reading “Ontario – Missed Opportunity re Implications of Set-Aside Test for Procedural Unfairness? – #850”