Arbitration Clauses May Be Difficult To Enforce

(August 2, 2022, 2:09 PM EDT) -- Commercial contracts often contain mandatory arbitration clauses, which compel parties to use this alternative dispute resolution (ADR) method to resolve disputes arising under the contract and bar parties from the courts.

Although these clauses are intended to provide the parties with a quick and efficient method of resolving conflict, they are not always as straightforward as they seem and can require court intervention to enforce them.

This spring, we — Robins Appleby LLP partner David Taub and associate Anisha Samat — successfully enforced an arbitration clause in a limited partnership contract. Justice Cory Gilmore of the Ontario Superior Court's Commercial List ruled firmly in favour of our clients and directed the parties to proceed to arbitration (VHGCC-14 LP v. 2308451 Ontario Inc. [2022] O.J. No. 676.)