Québec – court lacks jurisdiction to refer parties to arbitration where dispute involves $15,000.00 or less – #177

Mr. Justice Daniel Bourgeois in Medeiros v. Jan-Pro Canada Est, 2019 QCCQ 663 held that he had no jurisdiction sitting in Court of Québec, Small Claims Division to refer the parties to arbitration because an arbitration tribunal did not qualify as a ‘court’ under article 547 al. 2(2) of Québec’s Code of Civil Procedure, CQLR c C-25.01 (“C.C.P.”) governing the options available to parties.  Instead of a referral, Bourgeois J. suspended the court proceedings in Small Claims Division pending an arbitration tribunal’s determination of the validity of the arbitration clause.

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Québec – court enjoins reluctant arbitral party to abide by earlier court decision enforcing award – #174

In SDC Habitations Saint-Maurice phase III v. Raymond Chabot Administrateur, 2019 QCCS 636, Madam Justice Jocelyn Geoffroy summarily dispensed with a Respondent’s persistent refusal to abide by an award which had been recognized and enforced as a judgment of the Québec Superior Court.   The application to the court prompted a seldom needed level of court intervention in support of arbitration.  The court’s brief reasons reflect that respect for a resolution of disputes is rooted in a respect for the rule of law.

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[:en]Québec – non-respect of delays in arbitration agreement insufficient to annul award – #168[:]

[:en]In Carpenter v. Soudure Plastique Québec inc., 2019 QCCS 321, Madam Justice Silvana Conte refused to annul an award merely because delays in the arbitration agreement had been exceeded or that the arbitrator had reserved jurisdiction on certain issues.  She held that the delays had not only been waived but were insufficient to undermine the award and that arbitrators had jurisdiction to reserve issues for later determination.   Despite an initial willingness to pay, Defendant successfully argued that certain payment orders were vague, leading Conte J. to homologate the award only in part. Because the monetary value of the disputed orders fell below her jurisdiction, she referred the parties to the Court of Québec to determine whether they had a binding, post-award settlement agreement regarding payment.

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[:en]Québec – unfounded challenges to final award declared abusive, exposes Respondents to damages – #167[:]

[:en]Applying Québec’s Code of Civil Procedure, CQLR c C-25.01, Mr. Justice Gérard Dugré in Leduc v. Ayoub, 2019 QCCS 457 declared that Respondents’ challenges to a final arbitration award were manifestly unfounded and abusive, exposing Respondents to damages.  Dugré J. determined that Respondents’ challenges amounted to an indirect appeal of the award and would require the court to exceed the limited role given to it when recognizing and enforcing awards. Continue reading “[:en]Québec – unfounded challenges to final award declared abusive, exposes Respondents to damages – #167[:]”

[:en]Québec – successful arbitral party seizes assets in hands of third party pending homologation of award – #160[:]

[:en]In Instrubel N.V. v. Republic of Iraq, 2019 QCCA 78, Québec’s Court of Appeal upheld a successful arbitral claimant’s attempt to garnish funds owed by a third party to respondent pending an application to recognize and enforce its award. The Court determined that, independent of the location of the bank in which the funds were deposited, garnishee was domiciled within the jurisdiction of the courts of Québec and could be the subject of a garnishment when it is a debtor of a personal right owed to respondent. In reversing Instrubel, N.V. v. Ministry of Industry of The Republic of Iraq, 2016 QCCS 1184, the reasons provide meaningful, informed guidance for arbitration practitioners striving to preserve assets in anticipation of executing on successful arbitration awards. Continue reading “[:en]Québec – successful arbitral party seizes assets in hands of third party pending homologation of award – #160[:]”

[:en]Québec – one party’s omission to respond fully to other’s claim does not limit scope of arbitration – #157[:]

[:en]In Garantie de construction résidentielle (GCR) v. Ewart, 2019 QCCS 40, Madam Justice Danielle Mayrand held that one party’s omission to deal with all components of the other’s claims did not deny the arbitrator jurisdiction to deal with all issues raised in the dispute.  Despite the label used by one party to characterize its claim, Mayrand J. held that the arbitrator had correctly dealt with the true nature of the claims in the hearing administered by the Canadian Commercial Arbitration Centre (“CCAC”).
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[:en]Québec – award voided for providing insufficient reasoning and imposing unintelligible order – #152[:]

[:en]In 9264-3212 Québec inc. v. Moseka, 2018 QCCS 5286, Madam Justice Johanne Brodeur granted judicial review of an arbitral award because it was not executory. Despite applying a deferential standard of reasonable, Brodeur J. sent the parties back to arbitration because the specialized decision maker had omitted to articulate the industry standard he determined was breached and did not explain what result the party had to meet in order to comply with his order. Continue reading “[:en]Québec – award voided for providing insufficient reasoning and imposing unintelligible order – #152[:]”

[:en]Québec – arbitration not appropriate to conduct business or resolve daily business disagreements – #146[:]

[:en]In Naimer v. Naimer, 2018 QCCS 5210, Mr. Justice Stephen W. Hamilton rejected a post-trial solution by some of the litigants to impose arbitration as a way to avoid future deadlock in the operation of the litigants’ business. Though proposed in answer to his invitation to provide a lasting solution once the safeguard orders expired after the trial decision issued, Hamilton J. readily held that arbitration was not appropriate to resolve conflicts regarding day-to-day business decisions. The lack of any basis for arbitrators to decide on business initiatives, the non-arbitrable nature of business decisions and the anticipated delay in instituting arbitration for each disputed business decision lead Hamilton J. to dismiss the proposal. Continue reading “[:en]Québec – arbitration not appropriate to conduct business or resolve daily business disagreements – #146[:]”

[:en]Québec – industry association’s arbitration bylaw binds only members, allows litigation against non-members – #139[:]

[:en]In Hypotheca Courtier hypothécaire SSM Inc. v. Re/Max Imagine Inc., 2018 QCCQ 7956, Mr. Justice J. Sébastien Vaillancourt of the Court of Québec summarily dismissed a defendant’s objection to his jurisdiction, holding that the clear wording of an arbitration bylaw adopted by the Québec Federation of Real Estate Boards (the “Federation”) bound only its members. Members were still free to initiate court proceedings against non-members for disputes otherwise covered by the arbitration procedure. The detailed arbitration procedure also stated that any decisions issuing from the arbitration procedure were not to serve as precedents. Continue reading “[:en]Québec – industry association’s arbitration bylaw binds only members, allows litigation against non-members – #139[:]”

[:en]Québec – court dismisses rare challenge by successful arbitral party and challenge based on arbitral precedent – #137[:]

[:en]In PriceWaterhouseCoopers Inc. v. Chamberland, 2018 QCCS 4948, Mr. Justice Bernard Tremblay dismissed a successful arbitral party’s attempt to challenge an arbitral award on the basis that the arbitrator’s reasoning was not consistent with the majority line of reasoning in the subject matter. The arbitral party filed into court several prior arbitral awards involving other parties to support its unsuccessful argument that arbitral precedent justified the court’s intervention. Continue reading “[:en]Québec – court dismisses rare challenge by successful arbitral party and challenge based on arbitral precedent – #137[:]”