[:en]Québec’s Court of Appeal in 3223701 Canada inc. v. Darkallah, 2018 QCCA 937 distinguished between statutory arbitration and court litigation for disputes stemming from the construction and sale of new residential homes in Québec. The Court agreed with Madam Justice Carole Therrien’s trial decision in Darkallah v. 3223701 Canada inc., 2016 QCCS 3245 which declared that arbitration of issues covered by Québec’s Regulation respecting the guarantee plan for new residential buildings, CQLR c B-1.1, r 8 (“Regulation”) does not oust the courts’ jurisdiction for other issues such as disputes over the contract of sale and the legal guarantee for latent defects. The Court agreed that the arbitration and litigation are independent recourses providing different remedies and can be pursued either in isolation or in tandem, at the option of the home owner. Continue reading “[:en]Québec – arbitration and litigation endorsed as independent recourses for different claims related to new residential home disputes – #091[:]”
[:en]Québec – simplicity of jurisdictional challenge is for arbitrator to decide first – #090[:]
[:en]In an oral decision, Mr. Justice Daniel W. Payette in Cineplex Entertainment v. Compagnie France Film inc., 2018 QCCS 2133 resisted defendant’s claim that the court could decide defendant’s jurisdictional challenge on the basis that doing so required only a superficial review of the facts. Payette J. acknowledged that the parties’ contract contained clearly worded delays regarding arbitration but held that the parties’ post-dispute conduct removed them from the narrow exception, mentioned in Dell Computer Corp. v. Union des consommateurs, [2007] 2 SCR 801, 2007 SCC 34, to the general rule of ‘challenge first before arbitrator’. The parties’ numerous exchanges about extending delays in their contract renewal had blurred their contract’s clear wording. Because those exchanges resisted easy factual analysis, Payette J. referred the parties to their arbitrator to decide the jurisdictional issue on more fulsome facts and sealed the sensitive information prepared for the court’s jurisdictional hearing. Continue reading “[:en]Québec – simplicity of jurisdictional challenge is for arbitrator to decide first – #090[:]”
[:en]Québec – court enforces ex parte award stemming from e-mail notice to non-participating parties – #087[:]
[:en]In brief reasons, Mr. Justice Michel A. Pinsonnault in Centre Sheraton v. Canadian League of Gamers Inc., 2018 QCCS 1945 homologated a final award which issued ex parte against non-participating defendants. The case delivers on several of arbitration’s promises, including reduced formalities, shorter timelines, ability similar to courts to proceed ex parte and facility to have a final award homologated as a judgment of a court unless one of a limited number of grounds is proven to the court’s satisfaction. The apparent simplicity of the process listed in Pinsonnault J.’s reasons belies the contribution of several key components which enable those promises to be met: Québec’s Code of Civil Procedure, CQLR c C-25.01 (“C.C.P.”), an experienced arbitrator, an established administering institution and its rules, a court supportive of arbitration as an alternative route to dispute resolution. Continue reading “[:en]Québec – court enforces ex parte award stemming from e-mail notice to non-participating parties – #087[:]”
[:en]Québec – courts assert consequences of not undertaking/participating in mandatory legislated arbitration – #084[:]
[:en]Three recent Québec cases – Raymond Chabot Administrateur provisoire inc. (Garantie Abritat inc.) v. A à Z Construction-rénovation inc., 2018 QCCS 2061, Garantie Habitation du Québec inc. v. Groupe Faguy inc., 2018 QCCQ 2763 and Garantie habitation du Québec inc. v. Quirion, 2018 QCCQ 1549 – reflect the courts’ straightforward enforcement of arbitration as the exclusive legislated way in Québec to resolve disputes over guarantee plans for new residential constructions. Parties must either resolve their disputes by arbitration or forever accept that no dispute exists and that certain facts are either uncontested or uncontestable. The decisions remind parties that a failure or refusal to engage in arbitration has consequences on any subsequent flexibility to defend litigation. Continue reading “[:en]Québec – courts assert consequences of not undertaking/participating in mandatory legislated arbitration – #084[:]”
[:en]Québec – Court of Appeal agrees to confine litigants to one forum to resolve longstanding shareholders dispute – #080[:]
[:en]The Québec Court of Appeal in Jack v. Jack, 2018 QCCA 788 refused leave to appeal a Superior Court decision dismissing an application for a stay in favour of arbitration. The Court determined that not only was the multi-faceted litigation not covered by the agreement to arbitrate but that judicial efficacity and proportionality urged against having the parties litigate in two forums. Continue reading “[:en]Québec – Court of Appeal agrees to confine litigants to one forum to resolve longstanding shareholders dispute – #080[:]”
[:en]Québec – Court of Appeal upholds stay of multi-party court litigation pending arbitration by two parties – #071[:]
[:en]Québec’s Court of Appeal in Lavoie v. Maltais, 2018 QCCA 777 upheld a Superior Court case management decision staying court litigation involving five parties in favour of arbitration between two of the litigants. The arbitration would serve to first resolve a specific list of disputes tied to the contract containing the arbitration clause, followed by the revival of the court litigation to involve all five parties on the remainder of the issues. Continue reading “[:en]Québec – Court of Appeal upholds stay of multi-party court litigation pending arbitration by two parties – #071[:]”
[:en]Québec – courts vigilant regarding merchants’ reliance on arbitration clauses in consumer contracts – #066[:]
[:en]A pair of recent cases in Court of Québec demonstrate merchants’ persistence in inserting mandatory arbitration clauses into their contracts with consumers and the court’s corresponding vigilance in guarding against violation of Québec’s public order consumer legislation regarding mandatory arbitration. Despite defendants’ reliance on those arbitration clauses as part of their defenses in court, Mr. Justice Daniel Bourgeois in Poirier v. RSH Travel Ltd.(CheapOair.ca), 2018 QCCQ 2753 and Mr. Justice Jean Hudon in Gauthier v. Détection thermique JD Québec inc., 2018 QCCQ 2198 demonstrated how the courts make brief work of defendants’ reliance on mandatory arbitration clauses in consumer contracts. Continue reading “[:en]Québec – courts vigilant regarding merchants’ reliance on arbitration clauses in consumer contracts – #066[:]”
[:en]Québec – court considers challenge on arbitrator’s procedural irregularities and jurisdiction to issue safeguard orders – #055[:]
[:en]In deciding competing applications to homologate and to annul two arbitral awards and an interim safeguard oder, the Québec Superior Court in Hachette Distribution Services (Canada) Inc. v. 2295822 Canada Inc., 2018 QCCS 1213 set out the standard of review applicable to alleged procedural defects committed during an arbitration and the extent to which an arbitral tribunal can issue orders having an injunctive effect. Continue reading “[:en]Québec – court considers challenge on arbitrator’s procedural irregularities and jurisdiction to issue safeguard orders – #055[:]”
[:en]Québec – court’s obiter attempts to pre-empt procedural disagreements – #045[:]
[:en]Aware that arbitration was only a precondition to eventual litigation between the parties on related issues, Mr. Justice Jean-Jude Chabot of the Québec Superior Court in Julien et Assurances Jones inc., 2018 QCCS 35 still referred the parties to arbitration but in obiter offered some observations. If heeded, his observations would simplify the progress of the parties’ dispute resolution process. In doing so, Chabot J. demonstrated the judiciary’s flexibility and ongoing willingness to enable the parties’ choice of arbitration. Continue reading “[:en]Québec – court’s obiter attempts to pre-empt procedural disagreements – #045[:]”
[:en]Québec – court refers litigants to arbitration despite requesting party not signing arbitration agreement – #038[:]
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The Québec Superior Court in 9302-7654 Québec inc. (Team Productions) v. Bieber, 2017 QCCS 1100 determined that both litigants were bound by an arbitration agreement even if one had not personally signed the arbitration agreement. Mr. Justice Daniel Dumais also reviewed the facts provided to him in court to conclude that the litigation raised a dispute which, though potentially extracontractual, fell with the large scope of the parties’ arbitration agreement. Continue reading “[:en]Québec – court refers litigants to arbitration despite requesting party not signing arbitration agreement – #038[:]”