International Arbitration In Canada

• Published date: 24 November 2020
• Subject Matter: Corporate/Commercial Law, Litigation, Mediation & Arbitration, Contracts and Commercial Law, Arbitration & Dispute Resolution
• Law Firm: Blake, Cassels & Graydon LLP
• Author: Ms Iris Antonios, Laura Cundari and Rahat Godil

This country-specific Q&A provides an overview of international arbitration laws and regulations applicable in Canada.

1. What legislation applies to arbitration in your country? Are there any mandatory laws?

Every province and territory of Canada, except Quebec, has two arbitration statutes. One statute applies to domestic arbitrations, while the other applies to international commercial arbitrations. For example, in Alberta, the Arbitration Act, RSA 2000, c A-43 (Alberta Arbitration Act) applies to domestic arbitrations, while the International Commercial Arbitration Act, RSA 2000, c 1-5 (Alberta International Commercial Arbitration Act) applies to international commercial arbitrations.

In Quebec, the Civil Code of Quebec (CCQ) and the Code of Civil Procedure (CCP) apply to both domestic and international commercial arbitrations.

At the federal level, the Commercial Arbitration Act, RSC 1985, c 17 (2nd Supp) (Federal Commercial Arbitration Act) applies to both domestic and international commercial arbitrations when: (a) at least one of the parties is a federal department or Crown corporation; or (b) the arbitration involves an admiralty or maritime matter.

There are mandatory laws regarding arbitration. However, the mandatory laws depend on which statute applies. Common mandatory laws in domestic arbitration statutes provide that:

1. the parties shall be treated equally and given an opportunity to present a case;
2. the courts must stay court proceedings about matters that are subject to an arbitration agreement;
3. if an arbitration agreement does not specify the number of arbitrators who are to form the arbitral tribunal, the arbitral tribunal shall be composed of one arbitrator;
4. an arbitrator shall be independent of the parties and act impartially; and
5. subject to the arbitration agreement, a party may only appeal on questions of law with leave of the court. See, for example, ss 7(1), 9, 11(1), 19, 44(2), and 44(2.1) of the Alberta Arbitration Act and ss. 7(1), 9, 11(1), 19, and 45(1) of the Ontario Arbitration Act, 1991, SO 1991, c 17 (Ontario Arbitration Act).

Common mandatory laws in international commercial arbitration statutes, including the Federal Commercial Arbitration Act, provide that:

1. arbitration agreements shall be in writing;
2. if an arbitration agreement does not specify the number of arbitrators who are to form the arbitral tribunal, the arbitral tribunal shall be composed of three arbitrators; and
3. the parties shall be treated equally and given...