Parties to commercial transactions often choose arbitration over
litigation. While litigation offers a more structured process,
arbitration provides both parties with a tailored, more private,
faster and often less expensive route to resolve disputes.
Recently, in Schickedanz v Wagema Holdings Ltd, 2022 ONSC 5315
("Schickedanz"), Justice A.P.
Ramsay of the Ontario Superior Court of Justice weighed in on the
issue of whether leave is required to appeal an arbitral costs
award.
There are two competing lines of cases on the appeal of arbitral
costs awards. The Court in Flowers v Eickmeier, 2017 ONSC 3376
("Flowers"), was of the view
that leave to appeal costs is always required and parties cannot
contract out of this requirement. However, the Court in
Pagliaroli v Rite-Pak Produce Co Limited, 2010 ONSC 3729
("Pagliaroli"), held that leave
was not always required. Recently, the Court in
Schickedanz rejected the former approach and agreed with
Pagliaroli that leave
