Lexpert US Guides

2018 Lexpert US Guide

The Lexpert Guides to the Leading US/Canada Cross-Border Corporate and Litigation Lawyers in Canada profiles leading business lawyers and features articles for attorneys and in-house counsel in the US about business law issues in Canada.

Issue link: https://digital.carswellmedia.com/i/991061

Contents of this Issue

Navigation

Page 15 of 87

16 | LEXPERT • June 2018 | www.lexpert.ca/usguide Saskatchewan is an "export-depen- dent province. For us as practitioners to not have an International Commercial Arbitration law that adopts best prac- tices to provide business certainty to in- ternational commercial transactions, it puts us behind the rest of Canada and a lot of other states that have adopted the 2006 amendment." The Saskatchewan Court of Appeal's ruling in Greer v. Babey (2016 SKCA 45) provides recent case law on international commercial arbitration in the province. The trial judge had refused to refer a dispute to arbitration as it would result in a multiplicity of proceedings. (There was an action filed with the Court of Queen's Bench in Saskatchewan for portions of the parties' interactions not covered by the arbitration agreement.) On appeal, this decision was over- turned; the concern with a multiplicity of proceedings was no longer a relevant factor in refusing to refer matters to arbi- tration as described in Article 8(1) of the Model Law. NOVA SCOTIA > Nova Scotia adopted its International Commercial Arbitra- tion Act in 1986, appending the New York Convention and the 1985 Model Law to the statute. In a carve-out from the Model Law, the Nova Scotia statute says that if the parties fail to designate what law applies, the arbitral tribunal shall apply the rules of law it considers appropriate in the circumstances. The kind of modernization initiatives completed in Ontario and Québec, and ongoing in BC, has apparently not even been started in Nova Scotia. The limitation period to enforce an In- ternational Commercial Arbitration deci- sion in Nova Scotia is governed by the Su- preme Court's 2010 decision in Yugraneft v. Rexx Management (2010 SCC 19). "Based on that decision, the applicable limitation period depends largely upon whether the arbitral award was rendered in a reciprocating jurisdiction under the Reciprocal Enforcement of Judgments Act," says John Keith, a partner at Cox & Palmer in Halifax. "So it is somewhat of a moving target." Dispute Resolution a victorious party might still have to seek enforcement in several provinces. While the new Act is intended to pro- mote Ontario as a seat for International Arbitrations, at the very least it will en- sure that Ontario remains an arbitration- friendly jurisdiction that favors harmo- nized legal standards for recognition and enforcement of international arbitral law. QUÉBEC > Unlike the common-law provinces, Québec's civil law has one in- tegrated statute for domestic and Inter- national Arbitration. In 1996, Québec replaced the chapter on Arbitration in its Code of Civil Procedure with provisions based on UNCITRAL's 1985 Model Law, making more or less the same rules applicable to both domestic and interna- tional arbitration in the province. Québec, in contrast to the common- law provinces, considers an arbitration to be "international" if at least one of the parties to the dispute is headquartered outside Québec, even if it is in another province. (In the other provinces, it would be considered a domestic arbitra- tion and subject to the separate domestic arbitration statute.) A new Code of Civil Procedure, which came into force in Québec in January 1, 2016, contains a chapter that reflects the 2006 Model Law. One significant deviation from the Model Law contained in the Code is the default clause for the composition of the arbitration panel. It stipulates that, for resolving disputes in which the amount claimed is less than $2 million, there will be one arbitrator unless the parties have agreed to have more. The Model Law provides for a panel of three arbitrators unless the parties have agreed otherwise. The reason for this deviation was to make the arbitration process faster and less expensive. This reflects a shift in the rules of the major International Arbitration in- stitutions. However, when major contracts are in dispute, says Dalphond, most parties will prefer to have three panelists rather than have their fate consigned to a single arbitrator. "Three can make a mistake, but the risk is reduced." BRITISH COLUMBIA > BC's Interna- tional Commercial Arbitration Act is based on the original version of the Model Law, says Craig Dennis, a partner at Dentons Canada LLP in Vancouver, which is "pret- ty faithful to the 1985 Model Law." Under BC's former Liberal government, a working group was created to update the statute and thereby make Vancouver a more attractive seat of international commercial arbitration. One of the key provisions to be addressed in any update of the BC legisla- tion would be the 2006 Model Law's evo- lution in the area of interim relief and what powers an arbitrator has to grant such relief. ALBERTA > Alberta in 2000 amended the Arbitration Act, for domestic arbitra- tion matters, and the International Com- mercial Arbitration Act, for International Commercial Arbitration matters. Alberta, like Ontario, appends to the latter the Convention and the Model Law. Howev- er, it has not updated the Model Law to its 2006 version from the 1985 version. Calgary is trying to promote itself as a legal seat for International Commercial Arbitration, especially for the energy sector, says Michael McCachen, a partner at Blake, Cassels & Graydon LLP in Calgary. SASKATCHEWAN > Saskatchewan proclaimed its International Commer- cial Arbitration Act in 1988, appending the 1985 Model Law. "It hasn't substantively changed since 1988," says Christopher Masich, a partner at McK- ercher LLP in Saskatoon.

Articles in this issue

Links on this page

Archives of this issue

view archives of Lexpert US Guides - 2018 Lexpert US Guide