Ontario Court Of Appeal Reaffirms That Agreements To Arbitrate Are Strictly Enforced
An agreement to arbitrate has long been considered one of the most powerful means for commercial entities to control their dispute resolution. The arbitration clause allows businesses to ensure that they maintain control over the process for dispute resolution and, importantly, over public access to the details of any dispute which may arise. Though the wording of a particular arbitration clause is important, as it governs the scope of disputes which may be sent to arbitration, the strength of arbitration clauses can be gauged by how they are treated in the courts and legislatures of Canada.
Courts have traditionally given great deference to contractual mandatory arbitration clauses. This deference stems from the legislative attitude to enforcement of such clauses. For example, the UNCITRAL Model Law on International Commercial Arbitration (the "Model Law") provides in Article 8 that if a court action is brought in a matter which is the subject of an arbitration agreement, the court shall refer the parties to arbitration. The Model Law...
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