[: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[:]
[:en]
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[:]”
[:en]Québec – court holds parties to their bargain to refuse challenge to arbitral award – #036[:]
[:en]
Mouhadi v. Fiducie famille Eusanio, 2017 QCCS 3570 demonstrated the economy inherent in Québec’s approach to the court’s post-award intervention by briskly considering and dismissing four challenges to a final arbitration award. Unlike other Canadian provinces and territories, Québec arbitration law makes no distinction between international and domestic arbitration, applying a single standard familiar to international commercial arbitration practitioners. Defendants failed to meet their burden of establishing any one of the few grounds available to resist homologation. Continue reading “[:en]Québec – court holds parties to their bargain to refuse challenge to arbitral award – #036[:]”
[:en]Québec – court upholds tribunal’s dismissal of jurisdictional challenge based on alleged settlement – #033[:]
[:en]
Madam Justice Lucie Fournier in Demers v. Conseil d’arbitrage des comptes d’avocats du Barreau du Québec, 2017 QCCS 1084 held that a consensual arbitration tribunal had the jurisdiction to consider the existence and effect, if any, of any alleged settlement in deciding its own jurisdiction. Fournier J. also held that a non-party to a settlement could not rely on the terms of the settlement to resist arbitration of a dispute involving her. Continue reading “[:en]Québec – court upholds tribunal’s dismissal of jurisdictional challenge based on alleged settlement – #033[:]”
[:en]Québec – court offers reminder that arbitration agreements only bind parties – #029[:]
[:en]The Quebec Court of Appeal in Metso Minerals Canada Inc. v. BBA inc. 2017 QCCA 1544 firmly resolved irreconcilable procedural demands created when only some of the parties to a dispute had agreed to submit to arbitration. Weighing the competing inconveniences to the parties, the Appeal Court upheld a Quebec Superior Court decision and subordinated one party’s access to arbitration to another party’s reliance on court rules.
The decision is a reminder that agreements to arbitrate bind only those parties to it. If sophisticated parties in complex projects wish to consolidate their disputes either in court or in arbitration, the choice is theirs to negotiate beforehand — not the court’s to invent afterwards. Continue reading “[:en]Québec – court offers reminder that arbitration agreements only bind parties – #029[:]”
[:en]Québec – court determines legislated arbitration procedure is mandatory only for commercial party to contract – #026[:]
[:en]The Court of Québec refused to dismiss litigation between parties who had already undertaken arbitration of some of their differences and sent the parties on to trial so that a trial judge could determine the overlap, if any, between the prior arbitral award and the court litigation. The court in Gagnon v. Développement Hamavi inc., 2017 QCCQ 5269 also determined that the arbitration procedure set out in legislation for new residential constructions was mandatory for the builder and not by the buyer and concerned rights granted in supplement to the Civil Code of Québec, CQLR c CCQ-1991. Continue reading “[:en]Québec – court determines legislated arbitration procedure is mandatory only for commercial party to contract – #026[:]”
[:en]Québec – court issues oral judgment dismissing contestation to homologation disguising a challenge to merits – #025[:]
[:en]The Court of Québec issued an oral judgment in 9143-0439 Québec inc. v. OAM Aluminium distributeur inc., 2017 QCCQ 1364 dismissing Defendant’s characterization of arbitral award as non-observance of applicable arbitration procedure or matters beyond the scope of the arbitration agreement. The Court determined that the homologation stage was not an appeal of the award or an opportunity to challenge the merits. Continue reading “[:en]Québec – court issues oral judgment dismissing contestation to homologation disguising a challenge to merits – #025[:]”
[:en]Québec – court upholds dismissal of application to homologate and enforce final award due to lapse of time – #022[:]
[:en]
Québec’s Court of Appeal in Bard v. Appel, 2017 QCCA 1150 dismissed an appeal from a Superior Court decision in Bard v. Appel, 2015 QCCS 4752 which held that enforcement of a 2002 Florida final arbitration award was prescribed at the time its beneficiaries applied in 2014 in Québec to homologate and enforce. Continue reading “[:en]Québec – court upholds dismissal of application to homologate and enforce final award due to lapse of time – #022[:]”