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Civil and commercial arbitration: another quick and economical way to settle a dispute

Civil and commercial arbitration are other alternatives to going to court that provide for the quick and confidential settlement of disputes and the respect of your rights. A few months, even a few weeks, are usually sufficient to obtain a decision. Costs will vary according to the complexity and duration of the arbitration.

By mutual consent, the parties may choose to share the costs; otherwise, the division of costs is determined by the arbitrator, who decides which percentage of the costs is to be paid by each party.

How do you have recourse to arbitration?

If you had the foresight to include an arbitration clause in your contract, all you have to do is invoke the clause according to its stipulations.

If there is no arbitration clause, the parties in dispute may ask a notary to prepare an arbitration agreement under which their dispute will be submitted to arbitration according to the terms and procedures they agree upon. Arbitration is a method of conflict resolution recognized under the Civil Code of Québec and has proven to be an efficient way to settle disputes of all kinds (with the exception of family-related matters and questions of public order or capacity of persons).

Arbitration confidentiality

Arbitration is a private hearing, the very existence and the substance of which (statements, evidence, documents, etc.) cannot be made public without the express permission of all parties. Entrepreneurs and business people have the benefit of not having their disputes paraded about for all, especially their competitors, to see. In addition, arbitration often enables the parties to maintain their business relationship.

Where to find skilled arbitrators?

To select one or more arbitrators, contact the Chambre des notaires du Québec, whose list of qualified arbitrators is available to the public. These arbitrators are required to have specialized training in arbitration and a minimum of 10 years’ experience in the practice of law.

In settling a dispute by taking into consideration all rights and obligations, the arbitrator maintains very strict impartiality. The arbitrator will never intervene to advise the parties or offer an opinion.

An arbitration hearing may proceed orally, at a pre-arranged date, with the parties presenting their arguments and their supporting evidence in turn, calling on witnesses and experts as needed. The parties may also choose arbitration based on documentary exhibits and present their evidence in writing.

The arbitrator’s decision is final

Once the hearing is over, the arbitrator(s) render their decision in writing. The arbitrator’s decision is final and not subject to appeal. The parties must abide by the decision. If one party defaults, the other party is entitled to apply to the court to enforce the decision, unless the court finds grave fault or legal error, either of which will invalidate the arbitration.

Arbitration is a very accessible way to settle civil or commercial disputes. Except for a few cases of statutory arbitration imposed by law, it is a voluntary procedure. The choice is yours.