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Arbitration

Model Clauses

Standard Arbitration Clause

Any dispute, controversy or claim arising out of or relating to this contract, including any question regarding its existence, interpretation, validity, breach or termination or the business relationship created by it shall be referred to and finally resolved by arbitration under the Canadian Arbitration Association (CAA) Arbitration Rules. The seat of the arbitration shall be ________________.

The Parties may wish to consider adding one or all of the following options:

  1. There shall be ________ arbitrators (1 or 3). [If 3, state whether each party may nominate an arbitrator and how the third arbitrator is to be selected.] (See Rule 5.4.)
  2. The language of the arbitration shall be_________________.
  3. The hearing will be either be held in person in _____________ (enter city or venue), or remotely through videoconferencing software.
  4. The Parties consent to having the Arbitrator utilize proprietary artificial intelligence software owned and operated by the CAA to assist in summarizing the parties’ evidence and submissions. Any data collected through the use of artificial intelligence will remain confidential.
  5. The Arbitral Tribunal must select its award from one of the final offers made by each of the Parties, in its entirety and without modification. The Arbitral Tribunal need not provide detailed reasons for its award (Final Offer Selection Arbitration).
  6. An oral hearing need not be held.
  7. There will be no appeal from the decision of the Arbitral Tribunal on questions of fact, law, or mixed fact and law.

Parties may also wish to decide what Rules will apply with respect to pre-hearing disclosure of documents and examinations for discovery, especially where Parties from more than one country or province are involved.

Multi-Step Dispute Resolution Clause

If any dispute occurs between the parties relating to the application, interpretation, implementation or validity of this Agreement, the Parties agree to seek to resolve the dispute or controversy through mediation with the Canadian Mediation Association (CMA) before pursuing any other proceedings. Nothing herein shall preclude any Party from seeking injunctive relief in the event that the Party perceives that without such injunctive relief, serious harm may be done to the party. Any Party to the dispute may serve notice on the others of its desire to resolve a particular dispute by mediation. The mediator shall be appointed by agreement between the Parties or, if the Parties cannot agree within five days after receipt of the notice of intention to mediate, the mediator will be appointed by Canadian Mediation Association. The mediation will either be held in-person in [city], or remotely through videoconferencing software. The Parties agree to attempt to resolve their dispute at mediation. The costs of the mediator shall be shared equally by the Parties. If the dispute has not been resolved within thirty days of the notice of desire to mediate, any Party may terminate the mediation and proceed to arbitration as set out below.

Following the completion or termination of the mediation, any unresolved disputes, controversies, or claims arising out of or relating to this Agreement, including any question regarding its existence, interpretation, validity, breach or termination, shall be referred to and finally resolved by arbitration at the Canadian Arbitration Association (CAA) pursuant to the general Canadian Arbitration Association Rules for Arbitration. Any Party may serve notice of its desire to refer a dispute to arbitration. [The arbitration shall be conducted by a single arbitrator/tribunal of three arbitrators.] The arbitration shall either be held in person in [city], or remotely through videoconferencing software. The arbitration shall proceed in accordance with the provisions of the Arbitration Act (province). The decision arrived at by the arbitrator(s) shall be final and binding and no appeal shall lie therefrom. Judgement upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The costs of the arbitrator shall be divided equally between the parties. The Parties consent to the Arbitrator utilizing proprietary artificial intelligence software to assist in summarizing the parties’ evidence and submissions. Any data collected through the use of artificial intelligence will remain confidential.

Sample Expedited Rules Clause
If any dispute arises between the Parties relating to the application, interpretation, implementation or validity of this agreement, the Parties agree to resolve the dispute by arbitration using the Canadian Arbitration Association Expedited Arbitration Rules. The parties agree that the Canadian Arbitration Association Expedited Arbitration Rules give the parties a fair opportunity to present their case and respond to the case of the other side. The arbitration shall be held in [City] and shall proceed in accordance with the provisions of the Arbitration Act (province). Judgement upon the award rendered by the arbitrator may be entered in any court having jurisdiction.
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