[:en]In Amusements Extra Inc. v. DEQ Systems Corp., 2018 QCCS 3198, Mr. Justice Michel Beaupré (i) refused to qualify defendant’s reliance on the arbitration agreement as dilatory, (ii) dismissed as ‘incoherent’ the argument that defendant’s alleged breach of the contract containing the arbitration agreement could be grounds to refuse a referral to arbitration and (ii) accepted that arbitration on one issue would proceed in parallel to litigation on several others because that very situation was what the parties had provided for when submitting only part of their business dealings and contractual relations to arbitration. His reasoning on those and other arguments serves to pre-empt others raising similar objections automatically or without sufficient facts. Continue reading “[:en]Québec – court challenges basis of familiar objections to stay applications – #105[:]”
[:en]Québec – broad and liberal interpretation of arbitration agreement limited by agreement’s narrow scope of dispute – #104[:]
[:en]A tenant and condo unit landlord successfully resisted their condo association’s motion to refer them to arbitration on the grounds that the arbitration agreement did not apply to the dispute before the court and that the agreement did not bind the tenant. In Lahaye-Abenhaïm v. Association des copropriétaires du Lowney 1, 2018 QCCS 3215, Madam Justice Johanne Brodeur held that even a broad and liberal interpretation of arbitration clauses still has to meet the parties’ intention to submit to arbitration as stated in their agreement. Continue reading “[:en]Québec – broad and liberal interpretation of arbitration agreement limited by agreement’s narrow scope of dispute – #104[:]”
[:en]Québec – court outlines and upholds confidentiality of what is “said, written or done during” arbitration – #102[:]
[:en]In SNC-Lavalin Inc. v. ArcelorMittal Exploitation minière Canada, 2018 QCCS 3024, Mr. Justice Jean-François Michaud maintained the confidentiality of materials prepared for use in an arbitration limited to two parties and prevented communication of those materials to other parties involved in litigation involving related, overlapping disputes. By maintaining the arbitral parties’ objections based on the confidentiality of arbitration as established by legislation and the arbitral parties’ agreement, Michaud J. held that third parties seeking access to those materials must demonstrate necessity and not merely relevance and convenience of obtaining access. The legislated protection applied only to what is “said, written or done during” arbitration and did not shield access to relevant, admissible documents which existed independent of the arbitration. Continue reading “[:en]Québec – court outlines and upholds confidentiality of what is “said, written or done during” arbitration – #102[:]”
[:en]Québec – court enforces parties’ requirement of post-dispute agreement to arbitrate – #092[:]
[:en]In 9283-7459 Québec inc. v. Anfossi Tassé d’Avirro inc., 2018 QCCS 2548, Madam Justice Suzanne Courchesne held that parties’ reference to arbitration in their contract was neither sufficient nor clear enough to eliminate recourse to the courts. By adding the mention of ‘by agreement of the parties’ in their undertaking to arbitrate, the parties had imposed a post-dispute requirement for fresh agreement to go to arbitration. Given that the responding party resisted arbitration, Courchesne J. held that the terms of the undertaking to arbitrate had not been met and she would not order the parties to do what they had not clearly undertaken to do. Continue reading “[:en]Québec – court enforces parties’ requirement of post-dispute agreement to arbitrate – #092[:]”
[:en]Québec – arbitration and litigation endorsed as independent recourses for different claims related to new residential home disputes – #091[:]
[: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[:]”