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ARTICLE · 09 FEBRUARY 2026

Canadian Courts May Set Aside Valid Arbitration Agreements To Remedy Oppression

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In Tsa Corporation v KPMG LLP, the Supreme Court of the Northwest Territories confirmed that courts may set aside valid arbitration agreements...

CanadaLitigation, Mediation & Arbitration
Matthew Sammon
Matthew Sammon
Devon R. Kapoor
Devon R. Kapoor
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In Tsa Corporation v KPMG LLP, the Supreme Court of the Northwest Territories confirmed that courts may set aside valid arbitration agreements as a just and proper remedy for oppression. The decision underscores that arbitration will not shield parties from court scrutiny when agreements are tainted by oppressive misconduct.

The Allegations Against KPMG

Between 2016 and 2023, the Łutsël K'é Dene First Nation (LKDFN) – a remote First Nation on Great Slave Lake – was allegedly defrauded of more than $11 million by Ron Barlas, the CEO of companies created to generate revenue for LKDFN.

The Court previously found that Mr. Barlas caused those companies to enter into oppressive agreements that benefited him and his family. LKDFN has brought claims against both Mr. Barlas and KPMG, which Barlas retained as the accountant for himself personally as well as the companies. LKDFN alleges that KPMG assisted the scheme by preparing misleading financial statements and

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