Posts Tagged ‘Orbixa Management Services’

Model Law, not common law, governs enforcement of foreign arbitral awards in Ontario

February 29, 2012

The recent Ontario decision in ACTIV Financial Systems, Inc. v. Orbixa Management Services Inc., 2011 ONSC 7286 (CanLII), [“ACTIV Financial”) deals with an application to enforce an international commercial arbitration award where the arbitrator awarded $553,070.38 (USD) plus interest at 9% per annum, but did not give reasons for his award. Interestingly, the decision  confirms that the exclusive procedure for enforcement of foreign arbitral awards is by way of application under the International Commercial Arbitration Act, R.S.O. 1990, c. I.9, (“ICAA”) which incorporates the Model Law on International Commercial Arbitration adopted by the United Nations Commission on International Trade Law on June 21, 1985, (“Model Law”). Essentially, when a foreign arbitral award is enforced in another jurisdiction (referred to as “domestication” or “homologation”), the correct procedure in Ontario is to make an application to enforce the underlying foreign arbitral award, not the subsequent foreign judgment. (more…)

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