What Are The Limits Of Competence-Competence For Arbitral Tribunals?

Competence-competence is now a foundational principle of the modern law of arbitration. According to that principle, an arbitral tribunal is competent to decide its own competence. In other words, the tribunal has jurisdiction to decide its own jurisdiction. That principle demands, in turn, that the arbitral tribunal, and not the court, should in the first instance decide the tribunal's competence.

The competence-competence principle is now embedded in most arbitration statutes. In Ontario, section 17(1) of the Ontario Arbitration Act, 1991 (the "Act") states that the arbitral tribunal may rule on its own jurisdiction to conduct the arbitration and in that connection to rule on objections with respect to the existence or validity of the arbitration agreement.