Canadian appeal courts adopt a deferential posture toward
commercial arbitration awards.
This approach protects the policy underlying Ontario's Arbitration Act,
1991, S.O. 1991, c.17 (the
"Act"), which is to promote the resolution of
disputes between sophisticated commercial parties without Court
interference.
A recent conflict has emerged in Ontario case law, however,
about which standards of review (that is, the grammar by which
Courts analyze the merits of an arbitral award) apply.
Two 2022 decisions of the Ontario Superior Court, Serbcan
Inc. v. National Trust Co., 2022 ONSC 2644, and D Lands Inc. v. KS
Victoria and King Inc., 2022 ONSC 1029, suggest fundamentally
different approaches to the standard of review applicable to
arbitration orders. Which approach will ultimately govern remains
unresolved. The issue is ripe for appellate intervention.
