In Xiamen International Trade Group Co., Ltd. v. LinkGlobal Food Inc., 2024 ONCA 605, the Applicant sought the recognition and enforcement of an arbitral award of the Xiamen Arbitration Commission in China under the UNCITRAL Model Law on International Commercial Arbitration (“Model Law”). At the hearing, the Respondent sought an adjournment to initiate proceedings to obtain evidence on an alleged denial of justice in the arbitration. The Application judge denied the adjournment request and granted the application.
The Ontario Court of Appeal (“ONCA”) dismissed the Respondent’s appeal. The ONCA affirmed the Application Judge’s conclusion that the grounds for refusing recognition or enforcement of an international arbitration award are to be construed narrowly. A mere disagreement with the outcome of an award does not entitle a party to relitigate the merits in enforcement proceedings in the guise of a claim for breach of procedural fairness. The lack of evidence and/or substantive submissions falling short of an air of reality warrant the enforcement of the arbitral award.
Delay in adducing evidence was an important factor in denying the adjournment request. A party should proceed with diligence and obtain evidentiary support in a timely manner.
Judicial concern for the administration of justice in the orderly process of civil proceedings; and in effectively enforcing court orders were the key underlying principles of this decision.