Alexandre Kaufman and Alexander Gay

Litigation

Dismissal for delay in arbitration: Searching for the right test

Par Alexandre Kaufman and Alexander Gay juillet 6, 2018 6 juillet 2018

Dismissal for delay in arbitration: Searching for the right test

 

Some delays in arbitration are unavoidable. Others are the fault of the parties. Worse yet, the plaintiff is sometimes the one responsible. 

When can an arbitral tribunal dismiss for delay? The power to do so in Canada is statutory and does not derive from any inherent power of an arbitral tribunal to control its own process. Under Ontario’s Arbitration Act, 1991 it can dismiss a proceeding where there is delay by the party who has commenced the arbitration (s. 27(4)).  But the word “delay” is not defined. The Act is also silent on the factors that an arbitral tribunal should consider when exercising its discretion. And there is no jurisprudence in Canada on the subject either. 

Still, when the Act is considered as a whole, there are limits to the exercise of discretion by an arbitral tribunal. Specifically, it provides that a tribunal can set aside an award on the ground that the applicant was not treated equally or fairly or had no opportunity to present or respond to the case (s. 46(1) 6). 

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