Lexpert Magazine

October 2017

Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.

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52 LEXPERT MAGAZINE | OCTOBER 2017 | INTERNATIONAL COMMERCIAL ARBITRATION | Sarah Armstrong, a partner at Fasken Martineau DuMoulin LLP in Toronto, says two recent cases — Sattva Capital v. Creston Moly (2014 SCC 53) and Novatrax International v. Hägele Landtechnik (2016 ONCA 771) — confirm "that in our legal system, our courts take very seriously the rights of parties to have their disputes adju- dicated outside of court, and they'll respect that decision of the parties." So whether it is a matter of decisions limiting the scope of rights of appeal (Sat- tva) or limiting the ability of parties to go to court when they originally agreed to ar- bitration (Novatrax), "outsiders looking at our system would generally read these de- cisions as being supportive of a system that respects arbitration and parties' agreement to arbitrate," says Armstrong. In recent years, the Uniform Law Con- ference of Canada (ULCC) has been en- couraging the provinces and territories to harmonize their International Commer- cial Arbitration statutes on the basis of the UNCITRAL Model Law, 2006 version. "It is important to Canada's continued suc- cess in presenting itself to foreign users that as far as possible the provinces and territo- ries implement international arbitration legislation that is uniform in both form and substance, as a diversity of approaches among jurisdictions within Canada may deter foreign users," said the ULCC Report of the Working Group on New Uniform Arbitration Legislation, issued in 2014. If the laws were to be harmonized to be one of the very pressing areas where we could use harmonization, like the secu- rities laws, for example." Ontario Ontario is the province that has most re- cently updated its legislation governing In- ternational Commercial Arbitration. e current iteration of its International Com- mercial Arbitration Act came into force on March 22, 2017, replacing the one in force since 1990. e purpose of the legislation is to set basic norms for the ways in which In- ternational Commercial Arbitrations are conducted in Ontario as well as the treat- ment of resulting arbitral awards by Ontar- io courts. In essence, Ontario's new ICAA appends both the New York Convention and the 2006 Model Law. e Alberta government has also ap- pended the Convention and the 1985 Model Law to its statute. British Columbia and Québec, in contrast, have taken provi- sions from the Convention and the Model Law and incorporated them into their statutes, sometimes amending the provi- among provincial and territorial jurisdic- tions, "Canada in general would become a more attractive space for International Arbitration," says Shara Roy, a partner at Lenczner Slaght Royce Smith Griffin LLP in Toronto. Harmonization sends the right signals to the rest of the world, says Dalphond. "Parties want to have a seat which is neu- tral, efficient and where the courts won't mingle with the process. We are not big players on the world stage in this compared to New York, Paris, London or even Stock- holm. Canada is now trying to position itself. It's worthwhile doing, but we should have done it before. Canada has a niche: we're bilingual and bi-juridical, with both common law and civil law." However, Craig Dennis, a partner at Dentons Canada LLP in Vancouver, says harmonization need not be a high priority. "I'm not sure uniformity among the Cana- dian jurisdictions is a huge factor in decid- ing on Vancouver or Toronto as a venue for International Commercial Arbitration." Armstrong agrees: "It doesn't seem to me PHOTO: SHUTTERSTOCK PIERRE DALPHOND STIKEMAN ELLIOTT LLP "Canada is now trying to position itself [as an international seat of arbitration]. It's worthwhile doing, but we should have done it before. Canada has a niche: we're bilingual and bi-juridical, with both common law and civil law."

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