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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LEXPERT MAGAZINE | OCTOBER 2017 53 | INTERNATIONAL COMMERCIAL ARBITRATION | sions in the process. "I see the Ontario and Alberta approach as less complicated and potentially more appealing to outsiders coming in," says Armstrong. Ontario's approach facilitates matters by showing that which is included and not, without having to do a line-by-line com- parison between the provincial legislation and the international regime, says Roy. was the only Canadian jurisdiction with- out legislation that explicitly incorporated the New York Convention. "Previously," says Roy, "it was inferred that the New York Convention was ap- plicable in Ontario by virtue of section 10 of the previous version of the Ontario Act, which said that an arbitral award includes an award made outside of Canada. Now the new legislation formally removes any doubt that Ontario is a New York Conven- tion jurisdiction, to the extent that any ex- isted previously." Whether the specific provisions of the New York Convention were applicable in Ontario was a matter of debate. "Most of the time that debate was resolved in favour of 'yes,' but now there's just no room for de- bate," says Roy. Ontario's Superior Court of Justice can apply the Convention as part of Ontario law when a party seeks to en- force, or resist enforcement of, an interna- tional arbitral award. Secondly, by appending the 2006 Model Law, the new Ontario Act modernizes the definition of an "arbitration agreement." Previously it required that an arbitration agreement be explicitly in writing to be enforceable. Now, a written agreement is deemed to exist as long as the content of the agreement is "recorded" in some form. Says Roy: "It could be recorded in corre- spondence, in electronic communication, or it may even be that if a party pleads it and the other party doesn't deny it, that may be sufficient. It really broadens the scope of what may be available for international commercial arbitration." irdly, the ICAA, 2017 clarifies the scope and availability of interim relief from an arbitration tribunal. A party to an arbi- tration may seek interim relief if it suspects, for example, that the other party is going to dissipate the asset in dispute or destroy evidence. e old Act, based on the 1985 Model Law, allowed tribunals to grant in- terim relief, but was not specific about the scope of the relief available. Parties would sometimes appeal to the court before or during a proceeding because of the uncer- tainty. e 2006 Model Law established a comprehensive interim measures regime. e ICAA, 2017 expressly recognizes a tribunal's power to grant interim measures, including an injunction and security for costs, and for those orders to be recognized "at already gave Ontario an advantage, and this [new legislation] enhances it." e new ICAA clarifies some ambi- guities in the old Act that had resulted in disputes and uncertainty. First, the ICAA, 2017 explicitly states that the Convention and the Model Law have "force of law in Ontario." e ICAA, 1990 had made no reference to the Convention. So Ontario SHARA ROY LENCZNER SLAGHT ROYCE SMITH GRIFFIN LLP "Previously, it was inferred that the New York Convention was applicable in Ontario … Now the new legislation formally removes any doubt that Ontario is a New York Convention jurisdiction, to the extent that any existed previously."

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