In Xiamen International Trade Group Co., Ltd. v. LinkGlobal Food Inc., 2024 ONCA 605, the respondent brought an application in Ontario to enforce an international arbitration award from China. During the hearing of this request, the appellant sought an adjournment of the hearing to initiate legal proceedings in China. The goal of these proceedings was aimed at compelling the appellant’s former legal counsel to provide testimony regarding alleged breaches of natural justice in the international arbitration process. Such breaches, if substantiated, may have resulted in the refusal to enforce the arbitration award.
The Court of Appeal for Ontario denied the appellant’s argument, noting that the scope of denial for an international arbitration award is “narrow” and without evidence or substantive submissions with an air of reality, judgment should be granted to enforce the order. The Court of Appeal remarked that the appellant had a complete year from the date of the hearing to act on the arbitration award and gather the necessary evidence to contest its enforcement. However, the appellant did not make any attempts until just before the hearing to enforce the award, and no justification from the appellant for this evident lack of effort was provided.
As a result, the Court of Appeal for Ontario took no issue with the application judge’s ruling and dismissed the appeal.
The decision in Xiamen International Trade Group Co., Ltd. v. LinkGlobal Food Inc. is an important reminder for parties seeking to challenge the enforcement of international arbitration awards. Notably, parties may wish to consider obtaining legal guidance regarding the narrow basis for refusing international arbitration awards and the necessity of timely submission of evidence to refute enforcement.
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