CLOUTindex.
index.
Case 18: MAL 5; 8; 16
Canada: Ontario Court of Justice - General Division (Henry J.)
1 March 1991
Rio Algom Limited v. Sammi Steel Co.
Original in English
The interaction of articles 8 and 16 restricts the court's role in arbitrations to determining whether the arbitration clause is null and void. Any determination of the arbitrator's jurisdiction is made by the arbitrator pursuant to article 16.
The parties agreed that Sammi would purchase Rio's steel manufacturing business in Ontario, Quebec and New York State. The agreement provided that the parties each prepare a Closing Date Balance Sheet as soon as possible after closing. Arbitration was provided for if the parties could not resolve any dispute arising out of the Closing Date Balance Sheets. Such a dispute did arise. Sammi followed the required procedure and submitted the matter to an arbitrator. Rio commenced an action in court challenging the jurisdiction of the arbitrator and seeking an order staying the arbitration proceedings. The Chambers judge granted the order finding that the arbitrator's jurisdiction is a threshold issue of contract construction to be decided by the court. Leave to appeal the Chambers judge's order was sought.
The court granted leave to appeal. It found that the Chambers judge's decision had been
erroneously based on principles of the domestic arbitration act rather than those found in
the Model Law as enacted by the International Commercial Arbitration Act, Statutes of
Ontario, 1988, c.30. In particular the court cited article 16 which provides the arbitral
tribunal with the power to rule on its own jurisdiction. The court further noted article 8
which restricts court involvement to a determination of whether the arbitration agreement
is null and void.
Additional Information published in later CLOUT issue (on "9 February 2000"):
Abstract published in English: [1995] Model Arbitration Law Quarterly Reports, Vol. 1, issue 2, 29
Text of the court decision published in English: [1995] Model Arbitration Law Quarterly Reports, Vol. 1, issue 2, 33
UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW
CASE LAW ON UNCITRAL TEXTS (CLOUT)
Abstracts of cases
This compilation of abstracts forms part of the system for collecting and disseminating information on court decisions and arbitral awards relating to Conventions and Model Laws that have emanated from the work of the United Nations Commission on International Trade Law (UNCITRAL). Information about the features of that system and about its use is provided in the User Guide (A/CN.9/SER.C/GUIDE/1).
The abstracts have been prepared by national correspondents designated by their Governments. It should be noted that neither the national correspondents nor anyone else directly or indirectly involved in the operation of the system assumes any responsibility for any error or omission or other deficiency.
__________
Copyright United Nations 1993
All rights reserved.
Reproduced on this web site (www.interarb.com) with the kind permission of the United Nations, New York.
Database, typography, layout, etc. © interarb, 1999.