Resource

Commercial Arbitration in Canada

A concise overview of Canadian commercial arbitration, arbitrator selection, useful institutions, and Ontario legislation.

Canadian arbitration reference materials arranged on a conference table

Framework

Provincial legislation and international commercial arbitration.

11 Institutions 2 Ontario links 13 Total references

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.

Choosing an Arbitrator

The single most important step.

The selection of an arbitrator may be the single most important step in the arbitral process. Parties who choose arbitration expect an expeditious, fair, and cost-effective process. It is up to the arbitrator to ensure these expectations are met.

What to Look For

Process leadership and commercial judgment.

  • A complete understanding of the arbitral process
  • A commercial outlook
  • Cost-effective and timely process management
  • The ability to hear evidence and make findings of fact
  • The ability to apply the chosen law to the issues raised
  • Civility, courtesy, fairness, and a track record for getting it right

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