Summary

[1] International arbitration awards are to be recognized and enforced in Ontario in accordance with the provisions of the International Commercial Arbitration Act, 2017[1] (the “Act”), which adopts the terms of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards[2] (the “New York Convention”) and the Model Law on International Commercial Arbitration[3] (the “Model Law”). Canada and China are both signatories to the New York Convention.

[2] Article V of the New York Convention and Article 36 of the Model Law state the very limited bases on which recognition and enforcement of an arbitral award may be refused. They include circumstances where a party provides proof that they were under some incapacity when the arbitration agreement was signed, or where the recognition or enforcement of the award would be contrary to the public policy of the country where recognition and enforcement is being sought.

[3] These defences are raised by the Respondent to resist the enforcement in Canada of a unanimous arbitration award issued by the China International Economic and Trade Arbitration Commission (“CIETAC”) on October 9, 2019 (the “Award”).

[4] A certified copy of the Award, translated to English, was filed with the Notice of Application, thereby satisfying the preliminary requirements under the New York Convention and the Model Law for recognition and enforcement.

[5] The arbitration was conducted by a three-person panel of arbitrators (the “Tribunal”) appointed by the CIETAC Chairman, and the CIETAC Arbitration Rules[4] governed the proceeding which was held in Beijing China. The parties fully participated in the arbitration with written and oral submissions made to the Tribunal.

[6] The Award provides a lengthy recitation of the contractual history between the parties.

[7] Canadian Dehua International Mines Group Inc. (“Dehua”) is a Canadian corporation for which the Respondent is a director and 50% shareholder. Dehua has been granted creditor protection pursuant to a restructuring order made under the Companies’ Creditors Arrangement Act[5], dated June 3, 2022.

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