Scope of Arbitrable Disputes under Arbitration Clauses

Article by Barry Leon and Natasha Powell

Published in Arbitration and ADR, International Bar Assocation, October 2004.

Recent Canadian court decisions concerning the interpretation of the scope of arbitration clauses in commercial contracts – that is, the description of the types of disputes the parties want to resolve by arbitration – demonstrate that Canadian courts are now strongly disposed to favour arbitration. These decisions give a broad interpretation to the words used by the parties to express the scope of arbitrable disputes under their agreement. The decisions also reinforce the principle that if it is unclear whether the dispute falls within the scope of arbitrable disputes under an arbitration clause, courts should let the arbitral tribunal determine the issue.