CLOUT abstract 37.

CLOUT
index.

Case 37: MAL 36(1)(b)(ii)

Canada: Ontario Court, General Division (Eberle J.)

12 March 1993

Arcata Graphics Buffalo Ltd. v. Movie (Magazine) Corp.

Original in English

Unpublished

In order to refuse to enforce an award as contrary to public policy (article 36(1)(b)(ii) MAL) the award must be contrary to the morality of the community of the enforcing State.

The arbitral award in question included interest at the rate of 1.5% per month with no annual interest rate. This violated s. 4 of Canada's Interest Act which imposes limits on interest rates not expressed annually. The respondent argued that to give force to this provision would be contrary to public policy and thus contrary to article 36(1)(b)(ii) MAL enacted by the International Commercial Arbitration Act, Revised Statutes of Ontario, 1990, c.1.9.

The court adopted the principle that to refuse to enforce an award pursuant to article 36(1)(b)(ii) MAL the award must be contrary to the essential morality of the state in question. The court upheld the award.

Additional Information published in later CLOUT issue (on "9 February 2000"):

Abstract published in English: [1996] Model Arbitration Law Quarterly Reports, Vol. 2, issue 1, 1

Text of the court decision published in English: [1996] Model Arbitration Law Quarterly Reports, Vol. 2, issue 1, 4

From the UNITED NATIONS Document: "General Assembly: Distr. GENERAL: A/CN.9/SER.C/ABSTRACTS/2: of, 4 November 1993. Original : ENGLISH."

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.

__________

Reproduced on this web site (www.interarb.com) with the kind permission of the United Nations, New York.
Database, typography, layout, etc. © interarb, 1999.