When The Model Is Mandatory: EDE Capital V. Guan, 2023 ONSC 3273

Significance of Decision

In EDE Capital Inc. v Guan,¹ the Ontario Superior Court of Justice ("ONSC") dismissed an application to set aside an arbitral award, finding that the applicant had failed to furnish proof that its right to procedural fairness was breached or that the Arbitrator exceeded her jurisdiction. This case serves as a reminder that parties whose disputes meet the criteria of an international commercial arbitration, cannot contract out of the International Commercial Arbitration Act ("ICAA"), and by extension the Model Law, by agreeing to the application of the Arbitration Act, 1991, S.O. 1991, c. 17, in their arbitration agreement.

Background

EDE Capital arises out of a dispute between the Applicant, EDE Capital Inc. ("EDE Capital"), and certain of its shareholders, for breach of the shareholders' agreement and misrepresentation.