Jurisdiction(s):
United Kingdom

Aroma v Aroma Espresso: Ontario Court of Appeal applies Halliburton, confirms Model Law objective test; no duty to disclose later appointment by opposing counsel; IBA Guidelines merely guidance

Published on: 03 December 2024

Published by a LexisNexis Arbitration expert

Legal News

Article summary

Aroma Franchise Company, Inc v Aroma Espresso Bar Canada Inc. 2024 ONCA 839

What are the practical implications of this case?

The ruling confirms that, unless the parties stipulate otherwise in their arbitration clause, the Model Law’s objective yardstick governs both arbitrators’ disclosure duties and their potential disqualification in international arbitrations seated in Ontario. In the absence of express agreement to the contrary, that objective benchmark is the applicable test. As the Model Law is embedded in the international commercial arbitration statutes of every other Canadian province, and incorporated into the provisions of the Code of civil procedure of Québec, the judgment carries significance across Canada and will be relevant nationwide. The Court further determined that the application judge erred in relying on pre‑appointment communications between the parties to find a reasonable apprehension of bias, given those exchanges were never put before the arbitrator; it was inappropriate to draw such an inference from material unknown to the tribunal. Overall, the decision serves as a timely prompt to practitioners drafting arbitration clauses to address, with care, the rules that will govern conflicts of interest and disclosure...

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