Arbitration Law of Canada: Practice and Procedure

Arbitration Law of Canada: Practice and Procedure Third Edition J. Brian Casey JURIS

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Page No. Practice Notes Contents... xix Introduction... xxiii Acknowledgements... xxv About the Author... xxvii Chapter 1, Introduction to Commercial Arbitration... 1 1.1 Historical Background... 1 1.2 Modern Hallmarks of Arbitration... 5 1.3 Special Arbitration Clauses... 7 1.3.1 Amiable Compositeur and Decisions Ex Aequo et Bono... 7 1.3.2 Final Offer Arbitration... 8 1.4 Other Common Forms of Dispute Resolution... 8 1.4.1 Mediation... 8 1.4.2 Conciliation... 11 1.4.3 Clauses Used for Mediation and Conciliation... 11 1.4.3.1 Sample Institutional Mediation Clause... 12 1.4.3.2 Sample Ad Hoc Mediation and Conciliation Clauses... 12 1.4.4 Mini-trial... 12 1.4.4.1 Sample Mini-trial Clause... 13 1.4.5 Neutral Evaluation: Expert Determination and Valuation... 13 1.4.5.1 Expert Determination Clause... 15 1.4.5.2 Sample Expert Determination Clause... 15 1.4.6 Dispute Boards... 15 1.5 Hybrid Forms of Dispute Resolution... 16 1.5.1 Practice Note Mediation Agreement in Med-Arb... 19 1.6 When to Consider Arbitration... 19 Chapter 2, Application and Scope of the Legislation... 23 2.1 Introduction... 23 2.2 Application and Scope of Federal Legislation... 25 v

2.3 Provincial Legislation... 27 2.3.1 Alberta... 29 2.3.2 Ontario... 29 2.3.3 British Columbia... 30 2.3.4 Saskatchewan... 31 2.3.5 New Brunswick... 31 2.3.6 Manitoba... 32 2.3.7 Newfoundland and Labrador... 32 2.3.8 Nova Scotia... 32 2.3.9 Prince Edward Island... 33 2.3.10 Quebec... 34 2.3.11 The Territories Yukon, Northwest and Nunavut... 34 2.4 Washington Convention... 34 2.5 Application and Scope of the Provincial International Commercial Acts... 35 2.5.1 Definition of International in the International Acts... 36 2.5.2 Definition of Commercial in the International Acts... 37 2.6 Contracting out of the International and Domestic Acts... 40 2.7 Oral Arbitration Agreements... 43 2.8 Inter-Provincial Arbitration... 44 2.9 Practice Notes Characterizing the Agreement... 44 2.10 Proper Law of the Contract Distinguished from the Law of the Arbitration... 45 2.10.1 Practice Note Practical Considerations... 46 2.11 Judicial Interpretation of the Domestic, International and Federal Acts... 47 2.12 Party Autonomy... 49 Chapter 3, The Arbitration Agreement... 51 3.1 Arbitration Agreement Defined... 52 3.2 Autonomy of the Arbitration Agreement... 53 3.2.1 The Development of the Autonomous Arbitration Clause... 54 3.2.2 Practice Note Allegations of Fraud or Illegality... 59 3.3 The Law Applicable to the Agreement to Arbitrate... 59 3.3.1 Practice Note Determining the Law of the Arbitration Agreement... 62 3.4 Arbitration Agreement as Contract... 63 vi

3.4.1 Consensus ad Idem... 64 3.4.1.1 Practice Note Practical Considerations of Consensus ad Idem... 66 3.4.2 Implied Agreement to Arbitrate... 66 3.4.3 Incorporation by Reference... 67 3.4.3.1 Practice Note Incorporation by Reference... 70 3.5 Associated Parties and Assignees... 70 3.5.1 Operation of Law... 71 3.5.2 Additional Parties by Agreement of the Parties... 73 3.5.3 The Group of Companies Doctrine... 74 3.5.4 By Later Agreement of the Parties... 76 3.6 Court Enforcement to Arbitrate under the Domestic Acts... 77 3.6.1 Incapacity... 77 3.6.2 Invalidity... 77 3.7 Court Enforcement to Arbitrate under the Model Law... 78 3.7.1 Null and Void... 79 3.7.2 Inoperative... 79 3.7.3 Incapable of Being Performed... 81 3.7.4 Practice Note Legal Considerations When Drafting an Arbitration Clause... 81 3.8 Termination... 82 3.8.1 Death of a Party... 82 3.8.2 Bankruptcy... 82 3.9 Interpreting the Arbitration Agreement... 83 3.9.1 Determining the Scope of the Arbitration Agreement... 85 3.9.2 Inconsistent Wording... 89 3.10 Public Policy Considerations and Statutory Claims... 92 3.10.1 Consumer and Class Actions... 98 3.11 Scott v. Avery Clauses... 100 3.12 Negotiating and Drafting an Arbitration Agreement... 100 3.12.1 General Considerations... 100 3.12.2 What Is to Be Arbitrated: The Scope of the Clause... 103 3.12.3 Practice Note Example of a Broad Ad Hoc Clause... 107 3.12.4 Before Whom Is It to Be Arbitrated?... 107 3.12.5 Where Is It to Be Arbitrated?... 111 3.12.6 Practice Note Choosing the Place of Arbitration... 113 vii

3.12.7 How Is It to Be Arbitrated?... 114 3.13 Commencing Arbitration and Service... 120 3.14 Third Party and Multi-Party Disputes... 121 3.15 Optional or Permissive Arbitration Clauses... 124 3.15.1 Practice Note Optional or Permissive Arbitration Clauses... 126 3.16 Agreement to Arbitrate after a Dispute Has Arisen: Submissions... 127 3.17 Stepped or Progressive Dispute Resolution Clauses... 128 3.17.1 Negotiation... 128 3.17.2 ADR... 129 3.17.3 Enforcement of Progressive or Stepped Clauses... 132 3.17.4 Practice Note Enforcement of Conditions Precedent to Arbitration... 137 3.18 Breach of Arbitration Agreement... 138 Chapter 4, Commencing the Arbitral Process and Choosing an Arbitrator... 141 4.1 Rules regarding Commencement... 141 4.2 Form of Commencing Document... 142 4.3 Service of Commencing Document... 143 4.3.1 Practice Note Commencing Arbitration... 145 4.4 Answer to the Notice of Arbitration... 146 4.5 Time Limits and Limitation Periods... 147 4.5.1 Time Limits in the Agreement... 147 4.5.2 Relief from Contractual Time Limits... 149 4.5.3 Limitation Act Time Limits... 150 4.5.4 Practice Note Time Limits... 152 4.6 Commencement and Empowerment... 152 4.7 Composition of the Arbitral Tribunal... 153 4.8 Choosing an Arbitrator... 154 4.8.1 What to Look for in an Arbitrator... 155 4.8.2 Finding an Arbitrator... 155 4.8.3 Interviewing a Potential Arbitrator... 156 4.8.4 Party Appointment of a Sole Arbitrator... 159 4.8.5 Appointing Authority Appointments... 160 4.8.6 Institutional Assistance... 160 4.8.7 Court Assistance in Appointment... 160 4.8.8 Three Arbitrators... 161 4.8.9 Choosing the Chair... 161 viii

4.8.10 Practice Note Checklist for Arbitrator Terms of Appointment... 162 4.9 Independence and Impartiality... 163 4.9.1 Independence... 164 4.9.2 Impartiality and Bias... 166 4.9.3 Disclosure Guidelines... 170 4.9.4 Nationality... 173 4.9.5 The Partisan Arbitrator... 174 4.10 Challenge... 176 4.10.1 Reasonable Apprehension of Bias... 176 4.10.2 Qualifications of Arbitrators... 177 4.10.3 Method of Challenge... 178 4.10.4 Practice Note Challenge... 179 4.10.5 Waiver... 180 4.11 Counsel to the Tribunal... 181 4.12 Administrative Secretary to the Tribunal... 181 4.12.1 Practice Note The Use of a Secretary to the Tribunal... 183 4.13 Termination of Arbitrator s Mandate... 184 4.13.1 Termination under the Domestic Acts... 184 4.13.2 Termination under the Model Law... 188 4.13.3 Replacement Arbitrator... 188 4.14 Arbitrator s Immunity from Suit... 188 4.15 Arbitrator s Fees... 190 4.15.1 Practice Note Arbitrator s Fees... 192 Chapter 5, The Arbitral Tribunal s Jurisdiction... 195 5.1 Sources of Jurisdiction... 195 5.1.1 Jurisdiction by Agreement Party Autonomy... 195 5.1.2 Jurisdiction by Implication... 196 5.1.3 Jurisdiction: Categories... 197 5.2 The Jurisdiction to Decide Jurisdiction... 198 5.2.1 Jurisdiction under the Domestic Acts... 198 5.2.2 Jurisdiction under the Model Law... 198 5.3 Jurisdiction over the Parties and Their Representatives... 199 5.3.1 Parties to the Arbitration Agreement... 199 5.3.2 Jurisdiction over the Parties Representatives... 200 5.4 Subject Matter Jurisdiction... 202 5.5 Jurisdiction to Determine the Applicable Rules of Law... 206 5.5.1 Jurisdiction to Determine the Applicable Law... 206 ix

5.5.2 Jurisdiction to Raise Issues of Law Not Raised by the Parties... 207 5.5.3 Practice Note Jurisdiction to Determine Applicable Rules of Law... 210 5.6 Jurisdiction to Determine Procedure... 210 5.7 Objecting to Jurisdiction... 212 5.7.1 Objecting to Jurisdiction over a Claim or a Party... 212 5.7.2 Exceeding Jurisdiction during an Arbitration... 213 5.7.3 Waiver... 213 5.7.4 Court Review of a Decision on Jurisdiction... 214 5.7.5 Practice Note Arbitrator Exceeding Jurisdiction... 215 5.8 Jurisdiction to Make Interim Preservation Awards... 216 5.8.1 Appointment of Emergency Arbitrators to Deal with Interim Measures... 218 5.8.2 The Test for an Interim Measure of Protection... 219 5.8.3 Practice Note Interim Measures, Court or Tribunal?... 221 5.9 Jurisdiction to Award Interest... 223 5.9.1 Interest under the Domestic Acts... 223 5.9.2 Interest under the Model Law... 224 5.10 Jurisdiction to Award Costs... 226 5.10.1 Costs under the Domestic Acts... 226 5.10.2 Costs under the Model Law... 227 5.10.3 The Test for Awarding Costs... 229 5.10.4 Practice Notes Costs... 231 5.11 Jurisdiction to Award Security for Costs... 231 5.11.1 Security for the Tribunal s Fees and Costs... 232 5.11.2 Jurisdiction to Award Security for the Costs of a Party... 233 5.12 Jurisdiction upon Settlement... 235 5.12.1 Practice Note Settlement... 235 Chapter 6, Conduct of Arbitral Proceedings... 237 6.1 Rules of Procedure... 237 6.1.1 Judicial Fairness and Economic Efficiency... 238 6.1.2 Structure and Flexibility... 239 6.1.3 Practice Note Arbitrators Approaches to Procedure... 240 6.2 Conduct of Counsel... 242 6.2.1 Ethical Issues... 243 x

6.3 Preliminary Meetings and Preliminary Hearings... 245 6.3.1 Setting out an Agenda... 246 6.3.2 Communications and Correspondence with the Arbitrator... 247 6.3.3 Practice Note The Preliminary Meeting... 247 6.4 Statements... 251 6.4.1 Domestic Acts... 251 6.4.2 Model Law... 253 6.4.3 Practice Note Statements... 253 6.4.4 Supplementary Statements or Amending Statements: Domestic Acts and the Model Law... 254 6.4.5 Failure to Submit Statements: Domestic Acts and the Model Law... 255 6.5 Submissions to Arbitration and Terms of Reference... 256 6.6 Production of Documents and Pre-hearing Discovery... 257 6.6.1 Document Disclosure and Exchange... 259 6.6.2 Objections to Production... 261 6.6.3 Electronic Production... 263 6.6.4 Failure to Produce Documents... 263 6.6.5 Translation of Documents... 264 6.6.6 Pre-hearing Oral Discoveries and Witness Statements... 264 6.6.7 Oral Discovery of Non-parties... 265 6.6.8 Practice Note Discovery... 266 6.7 The Requirement for a Hearing... 266 6.7.1 Basic Requirements for a Hearing... 266 6.7.2 Waiver... 268 6.8 Time and Place of Arbitration Hearing... 269 6.8.1 Distinguishing the Place of Arbitration from the Place of Hearing... 270 6.9 Adjournments... 271 6.10 Privacy and Confidentiality... 271 6.10.1 Privacy of the Arbitration Hearing... 271 6.10.2 Confidentiality of the Arbitration... 272 6.10.3 Exceptions to Confidentiality... 277 6.10.4 The Deemed Undertaking Rule... 281 6.10.5 Practice Note Confidentiality... 282 6.11 Amicus Curiae... 283 xi

6.12 Delay of Proceedings... 284 6.12.1 Delay by the Respondent... 285 6.12.2 Delay by Claimant... 288 6.12.3 Delay by Tribunal... 289 6.13 Rules of Evidence... 290 6.13.1 Domestic Acts... 290 6.13.2 Model Law... 291 6.13.3 Rulings on Evidence... 293 6.14 Evidence at the Hearing... 293 6.14.1 Witness Statements as Evidence... 293 6.14.2 Oral Evidence under Oath... 294 6.14.3 Compelling Answers from Witnesses... 295 6.14.4 Compelling Non-parties to Appear... 297 6.14.5 Obtaining Testimony and Documents from a Witness out of the Jurisdiction... 300 6.14.6 Restrictions on Evidence... 302 6.15 Expert Evidence... 303 6.15.1 Expert Appointed by Tribunal... 303 6.15.1.1 Practice Note Experts Retained by the Tribunal... 304 6.15.2 Expert Retained by a Party... 304 6.15.3 Other Methods of Presenting Expert Evidence... 305 6.15.4 Qualifying and Disqualifying Experts... 306 6.15.5 Practice Note Experts and Experts Reports... 308 6.16 Order of Presentation... 309 6.17 Exclusion Orders... 309 6.18 Hearsay versus Natural Justice... 310 6.19 Cross-examination... 312 6.19.1 Cross-examination and Natural Justice... 312 6.19.2 Practice Note Time Limits on Examinations... 314 6.20 Inspection of Property or Documents... 314 6.21 Representation by Counsel... 315 6.22 Keeping a Record... 316 6.23 Practice Note Conduct of the Arbitral Hearing... 317 Chapter 7, Court Involvement in the Arbitral Process... 319 7.1 Introduction... 319 7.2 Constitutionality of Agreement to Oust Court s Jurisdiction... 322 7.3 Breach of Agreement to Arbitrate... 323 xii

7.4 Stay of Court Proceedings... 323 7.4.1 The Standard of Review... 327 7.4.2 Grounds to Refuse a Stay under the Domestic Acts... 331 7.4.3 Grounds to Refuse a Stay under the Model Law... 343 7.4.4 Arbitration Agreement Covering Only Part of Court Claim... 346 7.4.5 Third Parties... 356 7.4.6 Multiplicity of Proceedings Invalid or Inoperative... 359 7.4.7 Practice Note Dealing with Additional Claims and Parties... 360 7.4.8 Residual Discretion to Refuse a Stay... 361 7.4.9 Can the Plaintiff Seek a Stay?... 361 7.4.10 Lack of Remedy... 363 7.4.11 Effect of Refusing a Stay... 364 7.4.12 Removing a Stay... 364 7.4.13 Practice Note Starting and Staying Court Proceedings... 365 7.5 Appeal of Decision regarding Stay of Court Proceedings... 366 7.6 Enjoining Arbitration and Anti-suit Injunctions... 367 7.6.1 Enjoining Arbitration... 367 7.6.2 Anti-suit Injunctions... 369 7.7 Court Appointment of Arbitrator... 373 7.7.1 Domestic Acts... 373 7.7.2 Model Law... 373 7.7.3 Appointment of Substitute Arbitrator... 374 7.7.4 Practice Note Court Appointment of Arbitrators... 375 7.8 Interim Preservation Orders... 376 7.9 Questions of Law... 378 7.10 Court Enforcement of Arbitral Orders and Directions... 378 7.10.1 Domestic Acts... 379 7.10.2 Model Law... 379 7.11 Appeals from Interim Preservation Orders... 381 7.12 Court Assistance in Compelling Discovery from a Party... 383 7.12.1 In the Jurisdiction of the Place of Arbitration... 383 7.12.2 Practice Note Court Assistance in Discovery of a Non-party... 385 7.12.3 Court-Aided Discovery in the United States... 386 xiii

7.13 Court Assistance in Taking Evidence... 387 7.13.1 Domestic Acts... 387 7.13.2 Model Law... 388 7.13.3 Practice Note Court Assistance in Compelling Witness Attendance... 388 7.14 Court-Ordered Extension of Time Limits... 389 7.14.1 Time Limits in the Agreement... 389 7.14.2 Time Limits under the Applicable Law of the Contract... 391 7.14.3 Time Limits under Arbitration Legislation... 392 7.15 Court-Ordered Consolidation... 392 7.16 Court Involvement following Delay or Default of a Party... 394 7.17 Declaration of Invalidity of Arbitration... 396 7.18 Bankruptcy... 398 7.18.1 Petitioning a Party into Bankruptcy... 398 7.18.2 The Effect of Bankruptcy on the Agreement to Arbitrate... 399 7.19 Removal of Arbitrator... 400 7.19.1 Domestic Acts... 400 7.19.2 Removal of Arbitrator under the Model Law... 404 7.19.3 Failure to Treat Parties Fairly and with Equality... 404 7.19.4 Reasonable Apprehension of Bias... 408 7.19.5 Practice Note Removal of Arbitrator... 421 7.20 Court Review of Jurisdiction... 423 7.20.1 Domestic Acts... 423 7.20.2 Court Review of Jurisdiction under Model Law... 424 7.20.3 Standard of Review... 425 7.20.4 Practice Note Court Review of Jurisdiction... 427 7.21 Court-Ordered Explanation of Award and Deliberative Secrecy... 427 7.22 Appeals and Setting Aside of Awards... 428 7.23 General or Residual Powers of Involvement under the Domestic Acts... 429 Chapter 8, The Award... 433 8.1 Definition... 433 8.2 Final, Partial and Interim Awards... 434 8.3 Decision of the Tribunal... 436 8.4 Application of Law and Equity... 436 8.4.1 Must the Award Be in Accordance with Law?... 436 xiv

8.4.1.1 Practice Note The Distinction between Procedural Rules and Substantive Law... 438 8.4.2 In Accordance with the Terms of the Contract and Usage of the Trade... 439 8.4.3 Ex Aequo et Bono... 440 8.5 Remedies... 441 8.5.1 Adaption... 443 8.5.2 Rectification... 444 8.5.3 Punitive Damages... 445 8.6 Interest... 445 8.6.1 Domestic Acts... 445 8.6.2 Model Law... 446 8.6.3 Practice Note Pre- and Post-Award Interest... 448 8.7 Costs and Attorney s Fees... 449 8.7.1 Costs under the Domestic Acts... 449 8.7.2 Costs under the Model Law... 451 8.7.3 Practice Note Costs... 453 8.8 Cost Consequences of Offers to Settle... 453 8.9 Costs of the Arbitrators... 454 8.10 Form and Content of the Award... 455 8.10.1 Dissenting Opinions... 459 8.10.2 Practice Note Writing an Award... 460 8.11 Denomination of Award... 462 8.12 Settlement... 462 8.13 Place of Award... 463 8.14 Binding Nature of Award... 463 8.14.1 Binding as between the Parties... 464 8.14.2 Recognized by the Court: Res Judicata and Issue Estoppel... 464 8.14.3 Effect on Third Parties... 465 8.15 Explanation and Correction of Errors and Deliberative Secrecy... 466 8.15.1 Explanations... 466 8.15.2 Correction of Errors and Additional Awards... 466 8.16 Practice Notes Reviewing an Award... 468 8.17 Confidentiality of the Award... 469 8.18 Time Limits for Rendering Award... 471 xv

Chapter 9, Remedies against Awards... 473 9.1 Review of Procedural and Interlocutory Orders... 474 9.2 Appeal of Awards... 475 9.2.1 Interim Awards... 475 9.2.2 The Model Law No Right of Appeal Only Setting Aside... 477 9.2.3 Practice Note International Appeals... 480 9.2.4 Domestic Appeals... 480 9.2.5 Language Limiting the Right of Appeal... 481 9.2.6 Practice Note Appeals in the Domestic Context... 484 9.2.7 Time Limits for Appeals under the Domestic Acts... 484 9.2.8 Application for Leave to Appeal... 485 9.2.8.1 Additional Requirements for Leave to Appeal... 488 9.2.8.1.1 Importance to the parties... 488 9.2.8.1.2 Significantly affect the rights of the parties/miscarriage of justice... 490 9.2.8.2 Residual Discretion to Refuse Leave... 494 9.2.8.3 Summary of the Test for Leave to Appeal... 495 9.2.9 Practice Notes Leave to Appeal... 497 9.2.10 Appeal of the Decision Refusing Leave to Appeal... 499 9.2.11 Appeals without Leave... 501 9.2.12 Appeal on Questions of Fact or Mixed Fact and Law... 501 9.2.13 Appeal of Costs... 501 9.2.14 Powers of the Court on Appeal... 502 9.2.15 The Standard of Review on Appeal... 502 9.3 Enforcement of Award Pending Appeal... 505 9.4 Appeal to the Court of Appeal... 507 9.5 Setting Aside an Award... 508 9.5.1 Grounds for Setting Aside an Award... 510 9.5.1.1 Lack of Jurisdiction... 511 9.5.1.2 Excess of Jurisdiction... 512 9.5.1.3 Failure to Follow Proper Procedure... 516 9.5.1.4 Opportunity to Present Its Case... 517 9.5.1.5 Failure to Give Proper Notice and Natural Justice... 519 xvi

9.5.1.6 Failure to Treat a Party Equally and Fairly Self-represented Parties... 519 9.5.1.7 Reasonable Apprehension of Bias... 521 9.5.1.8 Failure to Follow the Arbitration Agreement... 522 9.6 The Standard of Review for Setting Aside... 524 9.6.1 Lack of Jurisdiction... 524 9.6.2 Excess of Jurisdiction... 525 9.6.3 Lack of Proper Conduct or Procedure... 526 9.7 Waiver and Setting Aside Awards... 526 9.7.1 Waiver by Express Agreement... 526 9.7.2 Waiver by Conduct... 527 9.8 Setting Aside Due to a Conflict with Public Policy The Model Law... 529 9.9 Omissions... 530 9.10 Time Limit for Challenge... 531 9.11 Extension of Limitation Periods... 531 9.12 Stay Pending Application to Set Aside Award... 532 Chapter 10, Recognition and Enforcement of Awards... 533 10.1 Recognition... 533 10.2 Enforcement under the Domestic Acts... 534 10.3 Enforcement of International Awards... 538 10.3.1 Enforcement under the New York Convention... 539 10.3.2 Enforcement under the Model Law... 543 10.3.3 Grounds for Refusing Recognition or Enforcement of International Awards... 545 10.3.3.1 Error of Law on the Face of the Record... 549 10.3.3.2 Failure to Give Reasons... 549 10.3.3.3 Not Yet Binding... 550 10.3.4 Refusing Enforcement of International Awards Public Policy... 551 10.3.5 Practice Note Public Policy... 558 10.3.6 Estoppel by Waiver... 558 10.3.7 Issue Estoppel... 559 10.3.8 Stay of Enforcement and Orders for Security... 561 10.3.8.1 Practice Note Seeking a Stay of Enforcement and an Order for Security of an International Award... 566 xvii

10.3.9 Court Enforcement of International Awards notwithstanding Court Annulment... 568 10.3.9.1 Practice Note What Is the Test for Enforcing an Award that Has Been Set Aside?... 570 10.4 Limitation Periods and Applications for Enforcement... 570 10.4.1 Domestic Act Limitation Periods... 570 10.4.2 Limitation Periods regarding the Enforcement of International Awards... 571 10.5 Practice Notes Enforcement of Awards... 574 10.5.1 Practice Note Enforcement of Domestic Awards under Domestic Acts... 574 10.5.2 Practice Note Enforcement of International Awards... 575 10.6 Enforcement of Partial and Interim Awards... 577 Appendices Appendix 1 Redfern Schedule for Document Requests... APP-3 Appendix 2 Reciprocity and the Federal Reservation under the New York Convention... APP-5 Appendix 3 Province of Alberta Arbitration Act... APP-11 Appendix 4 Province of Alberta International Commercial Arbitration Act... APP-41 Appendix 5 British Columbia Arbitration Act... APP-73 Appendix 6 British Columbia International Commercial Arbitration Act... APP-91 Appendix 7 Ontario British Columbia Foreign Arbitral Awards Act... APP-113 Appendix 8 Ontario Arbitration Act, 1991... APP-121 Appendix 9 Ontario International Commercial Arbitration Act, and Bill 27, Schedule 5... APP-157 Appendix 10 Quebec Code of Civil Procedure (excerpts)... APP-185 Glossary... GLO-1 Table of Cases... TOC-1 Index... IND-1 xviii

PRACTICE NOTES CONTENTS Chapter 1 Introduction to Commercial Arbitration 1.5.1 Mediation Agreement in Med-Arb... 19 Chapter 2 Application and Scope of the Legislation 2.9 Characterizing the Agreement... 44 2.10.1 Practical Considerations... 46 Chapter 3 The Arbitration Agreement 3.2.2 Allegations of Fraud or Illegality... 59 3.3.1 Determining the Law of the Arbitration Agreement... 62 3.4.1.1 Practical Considerations of Consensus ad Idem... 66 3.4.3.1 Incorporation by Reference... 70 3.7.4 Legal Considerations When Drafting an Arbitration Clause... 81 3.12.3 Example of a Broad Ad Hoc Clause... 107 3.12.6 Choosing the Place of Arbitration... 113 3.15.1 Optional or Permissive Arbitration Clauses... 126 3.17.4 Enforcement of Conditions Precedent to Arbitration... 137 Chapter 4 Commencing the Arbitral Process and Choosing an Arbitrator 4.3.1 Commencing Arbitration... 145 4.5.4 Time Limits... 152 4.8.10 Checklist for Arbitrator Terms of Appointment... 162 4.10.4 Challenge... 179 4.12.1 The Use of a Secretary to the Tribunal... 183 4.15.1 Arbitrator s Fees... 192 xix

PRACTICE NOTES CONTENTS Chapter 5 The Arbitral Tribunal s Jurisdiction 5.5.3 Jurisdiction to Determine Applicable Rules of Law... 210 5.7.5 Arbitrator Exceeding Jurisdiction... 215 5.8.3 Interim Measures, Court or Tribunal?... 221 5.10.4 Costs... 231 5.12.1 Settlement... 235 Chapter 6 Conduct of Arbitral Proceedings 6.1.3 Arbitrators Approaches to Procedure... 240 6.3.3 The Preliminary Meeting... 247 6.4.3 Statements... 253 6.6.8 Discovery... 266 6.10.5 Confidentiality... 282 6.15.1.1 Experts Retained by the Tribunal... 304 6.15.5 Experts and Experts Reports... 308 6.19.2 Time Limits on Examinations... 314 6.23 Conduct of the Arbitral Hearing... 317 Chapter 7 Court Involvement in the Arbitral Process 7.4.7 Dealing with Additional Claims and Parties... 360 7.4.13 Starting and Staying Court Proceedings... 365 7.7.4 Court Appointment of Arbitrators... 375 7.12.2 Court Assistance in Discovery of a Non-party... 385 7.13.3 Court Assistance in Compelling Witness Attendance... 388 7.19.5 Removal of Arbitrator... 421 7.20.4 Court Review of Jurisdiction... 427 xx

PRACTICE NOTES CONTENTS Chapter 8 The Award 8.4.1.1 The Distinction between Procedural Rules and Substantive Law... 438 8.6.3 Pre- and Post-Award Interest... 448 8.7.3. Costs... 453 8.10.2 Writing an Award... 460 8.16 Reviewing an Award... 468 Chapter 9 Remedies against Awards 9.2.3 International Appeals... 480 9.2.6 Appeals in the Domestic Context... 484 9.2.9 Leave to Appeal... 497 Chapter 10 Recognition and Enforcement of Awards 10.3.5 Public Policy... 558 10.3.8.1 Seeking a Stay of Enforcement and an Order for Security of an International Award... 566 10.3.9.1 What Is the Test for Enforcing an Award that Has Been Set Aside?... 570 10.5 Enforcement Awards of Awards... 574 10.5.1 Enforcement of Domestic Awards under Domestic Acts... 574 10.5.2 Enforcement of International Awards... 575 xxi