No Set Aside For Constructive Fraud Under Ontario's Arbitration Act

In Campbell v. Toronto Standard Condominium Corporation No. 2600¹ (Campbell), the Ontario Court of Appeal held that "fraud" as used in the Arbitration Act, 1991² (the Act), is limited to the common law definition of fraud and does not include the broader equitable concept of constructive fraud. This decision has important implications for applications to set aside arbitral awards on the basis of fraud, and the applicable time periods to bring any such application.

Background

The original arbitration concerned a dispute under the Condominium Act, 1998³ regarding the respondents' alleged non-compliance with rules of the appellant, the Toronto Standard Condominium Corporation No. 2600 (the Condominium Corporation) prohibiting the use of the respondents' unit for short-term rentals.