Canada is a confederation of provinces whereby most civil matters fall
within exclusive provincial jurisdiction. As a result, most commercial
arbitration cases are governed by the provincial legislation in force
at the place of arbitration.
All Canadian provinces and the Federal Government have passed modern
arbitration legislation based on the UNCITRAL Model Law on
International Commercial Arbitration. To fit within this legislation,
the arbitration must be both commercial and international.
Typically, an arbitration is international if one of the parties is
from outside Canada. For a more detailed description of the
definitions of commercial and international, reference should be had
to the specific provincial legislation.
Most provinces have also passed modern arbitration legislation for
domestic disputes. The characterization of the arbitration as either
domestic or international is important because court involvement and
appeal rights are substantially different.
Commercial arbitration in Canada is either administered by an
arbitration institution or conducted ad hoc. If the arbitration
agreement calls for arbitration under a particular institution's
rules, those rules must be followed when commencing the arbitration.
If the parties have not agreed on institutional arbitration, the case
proceeds ad hoc under the applicable provincial legislation.