Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

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4. Results: Answers
International Arbitration
Is third-party funding permitted for arbitrations seated in your jurisdiction?

Answer ... There are no Canadian statutes or regulations governing third-party funding directly; nor has there been any determination of the permissibility of third-party funding in arbitration (EDF (Services) Limited v Appleton & Associates, 2007 CanLII 36078 (Ont Sup Ct)). As it stands, the issue is being brought up through case law; for example, the Ontario Superior Court of Justice has held that class action plaintiffs must move to have a third-party funding agreement approved by the court (Bayens v Kinross Gold Corporation, 2013 ONSC 4974 at para 41). Parties in other provinces have sought court approval as well, but the courts have yet to take an explicit stance on this practice in class actions (Hobshawn v Atco Gas and Pipelines Ltd, Action 0101-04999 (Alta QB); MacQueen v Sydney Steel Corp, Hfx No 218010 (Murphy, J, NSSC); Hayes v The City of Saint John, 2016 NBQB 125). The Federal Court of Canada has found that there is no legal or logical basis to extend the requirement of pre-approval of third party funding agreements outside of class proceedings (Re Crystallex International Corporation, 2011 ONSC 7701).

In Quebec, neither the Code of Civil Procedure nor the Civil Code of Quebec contains provisions which permit or forbid third-party funding for arbitration.

For more information about this answer please contact: Mark Gelowitz from Osler, Hoskin & Harcourt LLP
International Arbitration