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CONTRACT LAW UPDATE 2024
Stay up to date with our mid-year case law update of the decisions of the COURT OF APPEAL FOR ONTARIO and the SUPERIOR COURT OF JUSTICE
Aroma Arbitration: The 'key context' for reasonable apprehension of bias
dispute resolution
On 20 March 2023, the Ontario Superior Court of Justice issued its decision in an application for setting aside two international arbitral awards between Aroma Franchise Company Inc. et al. v. Aroma Espresso Bar Canada Inc. et al., on the ground that there was a reasonable apprehension of bias, the Arbitrator exceeded his jurisdiction, and the Arbitrator gave inadequate reasons. The Court has decided to set aside both awards on the first ground that there was a reasonable apprehension of bias arising from the Arbitrator's failure to disclose an arbitral engagement bycounsel for the appellants in another separate and ongoing arbitration.Schickedanz Arbitration: Arbitrator's discretion to award reasonable costs
dispute resolution
In Schickedanz et al. v. Wagema Holdings Limited , the Ontario Superior Court of Justice decided on 21 December 2023 that an appeal against an arbitrator's cost award does not require leave for appeal but nevertheless should be dismissed. Facts The underlying dispute started before the courts, before being consolidated into a single arbitration, which was then disctontinued. The dispute involved five siblings, Schickedanz and her four brothers who were equal shareholders of Wagema Holdings Limited ("Wagema"). In 2018, Wagema retained a law firm in relation to a corporate reorganization. In 2020, Schickedanz and her holding company commenced proceedings against her four brothers and Wagema, the law firm and the firm’s partner responsible for the file. All the claims were subsequently consolidated into a single arbitration.EPC vs Collaborative Construction Contracts: Out with the old in with the new?
CONSTRUCTION law
Design-build or engineering, procurement, and construction (EPC) contract is an all-inclusive contract framework, typically used in large-scale and complex projects. It creates a single point of responsibility for all construction risks, requiring the contractor to complete an agreed scope of work by an agreed completion date, in return for an agreed lump-sum contract price. Although EPCs are expensive, they provide certainty for employers, contractors and project finance lenders. Long considered as the go to form of agreement, since the breakout of the COVID-19 pandemic and consequential disruption to the supply chain, have caused, along with other factors, a resurgence in the use of collaborative form of construction contracts, such as Early Contractor Involvement (ECI), and Integrated Project Delivery (IPD).