With the modernization of arbitration mechanisms given its less formal and consensual nature, the Canadian courts have become supportive and familiar with the practicability of foreign arbitral awards in international arbitrations. Oftentimes, the parties opt to include arbitration agreements as a part of their commercial relationships, or some may like to go for arbitration in the event of the arousal of a dispute later.
Undoubtedly, arbitration helps in achieving the desired outcomes in a more streamlined fashion rather than indulging in conventional court practices, but the arbitration does not just stop once the arbitral award is issued.
After the issuance of an arbitral award, the recognition and enforcement of the arbitral award has to be taken care of by the parties. To say, a court order recognizing the arbitral order will always be required.
It is pertinent to note that the enforcement of arbitral awards varies significantly across each province and this blog article particularly focuses on highlighting the framework for the enforcement of arbitral awards in Ontario.
Currently, the principal piece of legislation for the enforcement and recognition of foreign arbitral awards is International Commercial Arbitration Act, 2017 (“ICAA“) which follows the UNCITRAL Model Law and New York Convention while the domestic level arbitration within the province is dealt by the Arbitration Act, 1991.
What Makes An Arbitration “International”?
An arbitration is considered international if the businesses of the parties, at the finalization of the arbitration agreement, are situated in different countries or where one of the places is outside the country which is the place of the business of the parties or when the arbitration agreement is concerned with more than one country, and it has been expressly agreed by the parties. Under such circumstances, a foreign arbitral award subject to ICCA is issued.
Enforcement Of International Arbitral Award In Ontario
A court application in the Superior Court of Justice is a way through which an international arbitral award is enforced. Notably, there is a pro-enforcement policy in Ontario with regard to the enforcement of international commercial arbitral awards as observed in 2018 in Popack v. Lipszyc, the recognition and enforcement of the award in Ontario is in no way to be detracted due to the arousal of new issues subsequent to the issuance of an arbitral award.
However, if the party in whose favor the arbitral award has not been issued begins an application to quash the legality of the award on the standard grounds of refusal under article 36(1) of the ICCA, then the enforcement of the arbitral award may be adjourned. The limitation period to set aside the legality of the award is 90 days soon after its issuance.
We Can Guide You!
If you or someone you know needs legal help in navigating the landscape of domestic and international commercial arbitrations, please contact our lawyers at Ayaz Mehdi Professional Corporation.
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