CANADA Law and Practice Contributed by: Chris McKibbin, Avi Sharabi, Alex Valova and Douglas Treilhard, Stieber Berlach LLP
arbitration clauses indirectly through stays of domes- tic proceedings rather than through anti-suit relief directed at foreign litigation. Anti-arbitration injunctions are even less common. Given the strong policy favouring arbitration, Cana- dian courts are generally reluctant to prevent arbitra- tions from proceeding and will ordinarily permit arbitral tribunals to determine their own jurisdiction in the first instance. Judicial intervention typically occurs only in limited circumstances involving questions such as the existence, validity or scope of the arbitration agree- ment. 2.5 AI-Related Dispute Resolution and Jurisdiction Existing Canadian case law on jurisdiction and choice of law in disputes involving AI systems is extremely limited and does not support any trend or the develop- ment of AI-specific rules. In Toronto Star Newspapers Limited v OpenAI Inc, 2025 ONSC 6217, the Ontario Superior Court of Jus- tice found that it had jurisdiction and was prepared to exercise that jurisdiction, in a claim against cer- tain US-based OpenAI entities brought by Canadian news media companies impugning the use of their content to train ChatGPT. This decision is currently under appeal. 3. Arbitration in Insurance Disputes 3.1 Recognition of Arbitration Clauses Canadian courts generally recognise and enforce arbitration clauses in insurance and reinsurance contracts. The modern Canadian approach favours party autonomy, limited judicial intervention and the enforcement of agreements to arbitrate. Where parties have agreed to arbitrate disputes, courts will ordinar- ily stay court proceedings and require the parties to proceed before the arbitral tribunal, subject only to limited statutory exceptions. The strongest judicial support for arbitration is seen in sophisticated commercial transactions, particularly in the reinsurance market. Reinsurance contracts com- monly contain detailed arbitration provisions, often
coupled with foreign governing-law and forum-selec- tion clauses. Arbitration is less common in consumer and personal lines insurance. Most disputes involving automobile, homeowners’ and other personal insurance products are resolved through court proceedings, statutory dis- pute-resolution schemes or administrative tribunals rather than contractual arbitration. In certain areas, including statutory automobile accident benefits dis- putes, provincial legislation prescribes specialised adjudicative processes that limit arbitration’s practi- cal role. 3.2 Enforcement of Arbitral Awards Canada is generally regarded as an arbitration- friendly jurisdiction. Arbitral awards issued in Canada are enforceable through provincial arbitration legis- lation, while foreign arbitral awards are recognised and enforced pursuant to statutes implementing the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) and the UNCITRAL Model Law on International Com- mercial Arbitration. As a result, foreign awards are generally enforceable in Canada without the need to re-litigate the merits of the underlying dispute. Canadian courts take a pro-enforcement approach and generally limit their review to the narrow grounds prescribed by applicable arbitration legislation and the New York Convention. Courts will not ordinarily reconsider the tribunal’s factual findings or legal con- clusions. Instead, enforcement may be refused only in exceptional circumstances, such as where: • a party lacked proper notice of the arbitration; • a party was unable to present its case; • the award exceeded the scope of the arbitration agreement; • the composition of the tribunal was inconsistent with the parties’ agreement; • the award has been set aside at the seat of arbitra - tion; or • enforcement would be contrary to public policy. The principal practical barriers to enforcement are usually procedural rather than substantive. Parties seeking enforcement must ensure that the award and
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