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Provincial Authority in Commercial Arbitration
Canada operates as a confederation where the majority of civil issues, including commercial arbitration cases, are predominantly governed by provincial jurisdiction. Consequently, the legislation of the province where the arbitration is to take place usually dictates the rules and procedures for most commercial arbitration matters.
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Navigating Canadian Arbitration: Domestic vs. International
The federal government and all the Canadian provinces have adopted the UNCITRAL Model Law for all international commercial arbitrations. In some provinces, the Model Law is used as a model for legislation dealing with domestic arbitrations. With the exceptions of the federal government and Quebec, where concepts of the Model Law apply to international and domestic arbitrations alike, the remaining provinces restrict the Model Law to international commercial arbitrations. The reasoning is presumably that the provincial governments were not prepared to have the fully autonomous arbitral system of dispute resolution for domestic arbitrations. Except for very narrow federal jurisdiction, commercial disputes will generally be decided under the provincial arbitral legislation of the place of arbitration.
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