You Have Just Won An Arbitration – Now What? A Brief Guide To Arbitration Enforcement In Ontario

Many parties enter into agreements requiring that disputes be determined by binding arbitration. Some parties may voluntarily choose arbitration at a later time instead of pursuing a dispute through the court system.

While arbitration is generally considered to be quicker and less expensive than litigation, this is not always the case. In any event, obtaining a favourable arbitral award is often not the end of the process.

A common scenario plays out as follows: A debtor neglects to pay a creditor. Their commercial relationship is subject to an arbitration agreement. The creditor pursues arbitration and is successful in obtaining an arbitral award in a more streamlined fashion and may have been awarded some costs and interest as well. But the debtor still won't pay. An arbitrator has already determined the dispute, so surely the creditor can begin to exercise enforcement remedies, right? Not so fast...