Commercial arbitration or the Ontario Superior Court? Jurisdiction and the competence-competence principle applied from Peace River

William Muir, MA, JDArbitration, Business Arbitrator, Business Dispute Arbitrator, Business Litigation, Civil Litigation, Commercial, Commercial and Contract Litigation, Commercial Arbitration, Commercial Arbitrator, Commercial Contracts, Commercial Litigation, Cross-Border Litigation, International Commercial Arbitrator, International Litigation, Moving Litigation to Arbitration0 Comments

Which forum is appropriate to determine jurisdiction of the underlying commercial dispute: the Ontario Superior Court of Justice or arbitration under the International Commercial Arbitration Act? In Bombardier Inc. v Alstom Rail Sweden AB, 2026 ONCA 528 (CanLii), the Ontario Court of Appeal reviewed this question under s. 9 of the International Commercial Arbitration Act, which incorporates the UNCITRAL Model Law on International Commercial Arbitration into Ontario law. The court upheld the competence-competence principle and the legal test for jurisdiction of arbitration set out by the Supreme Court of Canada in Peace River Hydro Partners v Petrowest Corp., 2022 SCC 41. The competence-competence principle holds that, normally, arbitrators should be permitted to rule first on their own jurisdiction. However, a court may rule on an arbitrator’s jurisdiction for pure questions of law or where questions of mixed fact and law require only a “superficial” consideration of the evidentiary record. A superficial review is one where … Read More