Arbitration Submission Agreement Template for Canada

When you're facing a business dispute in Canada, an Arbitration Submission Agreement provides an alternative path to resolve conflicts without going through the traditional court system. This legally binding document allows parties to submit their existing dispute to arbitration, offering a more private, efficient, and often cost-effective resolution process than litigation.

When do you need this document?

You need an Arbitration Submission Agreement when a dispute has already arisen between parties who didn't previously agree to arbitration in their original contract. This commonly occurs in commercial relationships where businesses prefer to keep disputes confidential and avoid lengthy court proceedings. The agreement is essential when parties want to maintain business relationships while resolving conflicts, as arbitration typically involves less adversarial procedures than litigation. You'll also need this document when dealing with international commercial disputes where enforcement of arbitral awards under the New York Convention provides advantages over court judgments.

Key legal considerations

Several critical elements must be carefully addressed in your Arbitration Submission Agreement. The scope of arbitration must be precisely defined to avoid future disputes about what issues the arbitrator can decide. You need to specify the arbitrator selection process, including qualifications, number of arbitrators, and appointment procedures. The agreement should clearly state the applicable procedural rules, whether institutional rules like those of the ADR Institute of Canada or ad hoc procedures. Confidentiality provisions are crucial for protecting sensitive business information disclosed during arbitration. You must also address the arbitrator's authority, including whether they can award punitive damages or specific performance, and establish the seat of arbitration which determines the supervisory jurisdiction.

Legal requirements in Canada

In Canada, your Arbitration Submission Agreement must comply with both federal and provincial legislation depending on your dispute's nature. For international commercial arbitrations, the Commercial Arbitration Act applies, implementing the UNCITRAL Model Law which provides a comprehensive framework for arbitration proceedings. Domestic disputes fall under provincial arbitration acts, which vary by province but generally follow similar principles. The agreement must be in writing to be enforceable under Canadian law. You need to ensure the arbitrator has proper jurisdiction over the subject matter and parties. Provincial civil procedure rules may apply for court enforcement of arbitral awards or interim measures. The agreement should specify governing law for both the arbitration process and the underlying dispute, as these may differ. Finally, consider including provisions for emergency arbitrator procedures if urgent interim relief might be needed during the arbitration process.