Legal Landscapes: Canada – Litigation
1. What is the current legal landscape for commercial litigation in your jurisdiction?
Quebec operates under a bijural legal system that combines a civil law tradition — codified primarily in the Civil Code of Québec — with federal common law principles applicable in areas of federal jurisdiction, unlike other provinces in Canada, where common law is the sole source of law to be compliant with. In the commercial context, this framework is significantly shaped by administrative law, as a growing number of business activities are subject to regulatory oversight by provincial bodies whose decisions directly affect contractual rights, market access, and commercial operations. Bodies such as the Autorité des marchés financiers (AMF) and various professional orders exercise broad regulatory powers over their respective sectors, making administrative law an inescapable dimension of commercial legal practice.
When a commercial matter involves a regulatory decision — such as the refusal of a licence, the imposition of administrative penalties, or the suspension of market authorizations —, which clients need to take account while operating their businesses, the intersection of commercial law and administrative law in Québec is particularly acute in sectors such as financial services, construction, public procurement, and regulated professions. The AMF, for instance, exercises extensive supervisory authority over securities markets, financial products, and insurance, with the power to impose sanctions, order restitution, and refer matters for penal prosecution — all with direct and material consequences for commercial actors. Specific provincial and federal laws in Quebec also set out the obligations of merchants operating within the province. This is particularly true regarding obligation specific to the province of Quebec, such as the respect of the French language by compliance with the Charter of the French language, or the protection of customers’ personal data on the websites of merchants operating in Quebec, who must ensure compliance with the provisions of the Act respecting the protection of personal information in the private sector.
Commercial litigation landscape in Québec is increasingly defined by the multiplication of regulatory enforcement actions and the growing willingness of administrative authorities to exercise their sanctioning powers. Businesses now face the real prospect of parallel proceedings — simultaneous civil litigation and administrative or penal processes arising from the same set of facts — which demands a coordinated legal strategy capable of managing evidentiary, procedural, and reputational risks across multiple forums at once. This proliferation of potential contentious issues is all the more significant in international commercial cases, where there must be alignment between Canada and the client’s country regarding compliance with administrative regulations
2. What three essential pieces of advice would you give to clients involved in commercial litigation?
1) Plan well ahead for any potential disputes beyond the commercial sphere
The best time to prepare for a dispute is before it happens. When entering into any business or contractual relationship — particularly one with cross-border elements — it is essential to anticipate potential disputes from the start. Key contractual provisions must be addressed early, as they are difficult or impossible to correct later.
Parties should carefully consider the following when drafting a contract:
- Governing law – which country’s law will apply when interpreting contractual obligations;
- Jurisdiction – where disputes will be heard (i.e. the Quebec Superior Court or any foreign courts, by the inclusion of a forum selection clause);
- Enforcement – how decisions will be recognized and enforced across borders (since parties shall always consider that a judicial decision does not equate to the resolution of a dispute if enforcement is impossible).
Addressing these points proactively and including clear contractual provisions will help avoid costly uncertainty down the line. The use of an arbitration clause for solving commercial disputes proves particularly useful for defining current and future contractual obligations, thereby helping to prevent potential disputes.
2) Have all relevant documentation available when needed
Clients should immediately identify and secure all documentation that may be relevant to the dispute, or the negotiation of any commercial agreement. This includes executed contracts and any amendments thereto, pre-contractual exchanges and negotiation records, commercial correspondence — whether by letter, email, or other messaging platforms — invoices, delivery notes, payment records, and any internal communications that shed light on the parties’ intentions or conduct. In an increasingly digital business environment, particular attention should be paid to electronically stored information, which can be inadvertently deleted, overwritten, or rendered inaccessible if no preservation measures are taken promptly. It involves, in particular, the use of information technologies (such as artificial intelligence or cloud computing) to make sure that this preservation is effectively done.
3) Consider any alternative to resolving disputes other than through litigation
Before initiating any legal proceedings, clients should be clearly informed that litigation is both time-consuming and financially demanding. For this reason, the possibility of an out-of-court settlement should always be explored and discussed in depth with the client at an early stage. Alongside traditional settlement options, clients should also be made aware of alternative dispute resolution (ADR) methods — such as mediation, arbitration or conciliation — which can offer faster, more cost-effective, and less adversarial paths to resolving contractual conflicts.
While some of our clients believe that, as corporate lawyers, our specialty lies in litigation and contract negotiation, our team is highly experienced in representing clients through ADR methods, which can offer a more cost- and time-efficient solution, without neglecting customer satisfaction. This is also consistent with the reform of the Code of Civil Procedure, which encourages these alternative mechanisms to alleviate the burden on the judicial syst
3. What are the greatest threats and opportunities in commercial litigation in the next 12 months?
Over the next twelve months, Canadian businesses and their legal counsel will face an increasingly volatile commercial law environment shaped by both domestic pressures and global forces. Geopolitical tensions — particularly those stemming from trade friction with the United States, evolving sanctions regimes, and instability in key export markets — are poised to disrupt cross-border transactions and complicate the enforcement of international contracts and arbitral awards. At the same time, the continued rise in cybersecurity breaches represents one of the most immediate legal threats, generating complex liability exposures under federal and provincial privacy legislation. The growing frequency and sophistication of cybersecurity breaches have created novel liability exposures — from data protection violations to third-party claims — while raising profound evidentiary challenges, as compromised systems and encrypted communications make it harder to establish facts in litigation and regulatory proceedings. In Quebec, the provincial government has acknowledged the potential cybersecurity risks associated with the transactional operations of companies that operate websites and has enacted the Act respecting the protection of personal information in the private sector to regulate the use of personal information of clients by certain businesses.
Beyond these transactional and litigation risks, the next year will also see environmental, social and governance compliance emerge as a critical flashpoint in Canadian commercial law. Regulators, investors, and counterparties are intensifying their scrutiny of environmental and governance commitments, and organizations that fall short — whether through greenwashing, inadequate disclosure, or governance failures — face a growing risk of regulatory investigation, securities liability, and lasting reputational harm. This challenge is further complicated by the fragmentation of regulatory frameworks across federal and provincial jurisdictions in Canada, as well as the divergence between Canadian standards and those of key trading partners such as the European Union and the United States. The global business landscape is increasingly shaped by political discord that strain cross-border transactions and complicate enforcement of international agreements, as sanctions regimes, export controls, and political instability introduce new layers of legal uncertainty for multinational actors
We believe that, while it is undeniable that risks are an inevitable part of our practice, those can be mitigated through an approach focused on adaptability and problem-solving, and that managing these risks can also create numerous opportunities. Indeed, while commercial litigation is becoming increasingly complex—particularly due to the introduction of new concepts requiring legislation (the use of artificial intelligence, the ratification or elimination of new international free trade agreements) or a geopolitical landscape that has transformed in recent years (the imposition of tariffs between Canada and the United States being one example), navigating this constantly changing environment allows our clients to consult us on new challenges requiring solutions. Also, the proliferation of remote procedural mechanisms and the growing recognition of evidentiary innovation are creating meaningful opportunities to conduct complex litigation with renewed agility and precision, with the arrival of rapid advancement of technologies capable of processing and analyzing large volumes of legal data
Adopting a modern approach to dispute resolution ensures a consistent and effective response to disputes, while minimizing their impact on clients and their operations. The current environment demands a proactive and integrated legal posture, one capable of addressing transactional exposure, litigation risk, regulatory compliance, and reputational resilience within a single, coherent framework.
4. How do you ensure high client satisfaction levels are maintained by your practice in commercial litigation?
Maintaining a high level of client satisfaction in commercial litigation depends above all on establishing a relationship of mutual trust, by promoting transparency and effective communication to fully understand the client’s needs. Our approach involves developing a thorough understanding of the commercial realities, strategic issues, and specific objectives of each client in order to provide value-added legal services. These communications are not only intended to keep clients informed of the cases’ progress, but also to ensure a clear understanding of every step of the commercial process, in order to prevent any issues and promote a solution that is optimally tailored to the client’s needs.
In a context where in-house legal teams must balance efficiency and cost control, we prioritize proactive responsiveness aligned with both our clients’ legal objectives and their development strategies, to foster growth in an environment subject to various changes—whether due to Quebec’s unique regional characteristics or geopolitical shifts that may arise at any time. Our practice also stands out for its adaptability, which is essential in an environment where disputes, client expectations, and technologies are constantly evolving. Our expertise across various regulatory fields gives us the flexibility to provide rigorous and effective support at every stage of commercial litigation or corporate reorganization. Many international clients appreciate our ability to operate within the local context while ensuring effective coordination with international compliance.
5. What technological advancements are reshaping commercial litigation and how can clients benefit from them?
Artificial Intelligence is mainly used in contract management, due diligence and risk assessment upon corporate litigation. AI tools can review and analyze large volumes of documentation, identifying deviations from standard terms and supporting regulatory compliance. It is also a powerful tool to review mass-produced documentation and highlight relevant information in litigation case. However, although this is a technological tool that has been in development for several years, its recent emergence and widespread availability among practitioners requires special attention from our team to ensure its proper implementation. In commercial litigation notoriously, questions about authorship, cybersecurity and conformity arise when it comes to regulatory compliance, which AI, while still learning, can provide an answer for those concerns, but needs to be verified carefully to make sure compliance is truly honoured.