What is arbitration ? Do you have a dispute with a supplier, a business partner, or a neighbour — and are you looking for an alternative to the courts? Arbitration may be the solution you’re looking for.
WHAT IS ARBITRATION?
Arbitration is a private dispute resolution process in which the parties entrust their case to a neutral third party — the arbitrator — whose decision is final and binding.
Unlike mediation, where the goal is to find common ground, arbitration is closer to a trial: the arbitrator hears both parties, examines the evidence, and renders a decision — called an arbitral award — that is binding on all parties.
Arbitration is often found in commercial contracts and leases, where the parties agree in advance that any future dispute will be submitted to arbitrators rather than to the courts (art. 2638 C.C.Q.). This is known as an arbitration clause or an arbitration agreement. It generally allows for a faster resolution and lower costs than court proceedings. Where the parties have entered into an arbitration agreement, any dispute covered by that agreement may not be brought before a court. The court must, at the request of a party, refer the matter to arbitration, unless the agreement is found to be null (art. 622 C.C.P.).
WHO IS THE ARBITRATOR?
In Quebec, the parties choose their arbitrator by mutual agreement (art. 624 C.C.P.). If needed, they may appoint more than one arbitrator: each party appoints one, and those arbitrators jointly designate a third.
In civil matters, arbitrators are often lawyers, but may also be engineers, accountants, architects, or notaries specializing in the relevant field. Parties typically choose an arbitrator through referrals or via an arbitration body such as the IMAQ, which maintains a comprehensive list of experts and arbitrators across all fields. If the parties cannot agree on an arbitrator, the court may, at the request of either party, take any necessary measure to ensure their appointment. (art. 625 para. 1 C.C.P.)
Once appointed, the arbitrator has the same powers as a judge deciding a dispute. Arbitration must be conducted impartially and independently, in accordance with section 23 of the Charter of Human Rights and Freedoms.
HOW DOES ARBITRATION WORK?
- Hearing : Arbitration proceedings are conducted orally, unless the parties agree otherwise (art. 633 para. 1 C.C.P.). The arbitrator determines the process, while ensuring compliance with the principles of adversarial proceedings and proportionality.
- Hearing the parties : All parties must be duly heard before the arbitrator can render the arbitral award (art. 632 para. 1 C.C.P.). The arbitrator may administer oaths, appoint experts, and require parties to produce the documents and evidence supporting their claims.
- Arbitral award : The award is rendered within three months of deliberation. Once notified, the parties are bound by it. Upon request, it may be homologated by the court and acquires the same enforceability as a judgment. (art. 645 para. 1 C.C.P.)
CAN AN ARBITRAL AWARD BE CONTESTED?
With great difficulty. The only way to overturn an arbitral award is to apply for its annulment before the court within three months of receiving it (art. 648 C.C.P.). Such an application is only admissible if a fundamental defect is established. The grounds recognized by law are as follows (art. 646 C.C.P.):
- Incapacity of a party : A party lacked the legal capacity to enter into the arbitration agreement.
- Invalid agreement : The arbitration agreement is invalid under the law chosen by the parties or, failing any indication in that regard, under Quebec law.
- Failure to follow procedure : The method for appointing the arbitrator or the applicable arbitration procedure was not followed.
- Lack of notice or inability to present one’s case : A party was not duly notified of the appointment of an arbitrator or of the arbitration proceedings, or was otherwise unable to present its case.
- Excess of jurisdiction : The award deals with a dispute not covered by the arbitration agreement, or contains a conclusion that goes beyond its terms.
WHERE ARE ARBITRATION CLAUSES FOUND?
Arbitration in Quebec is governed by the Code of Civil Procedure (art. 620–655 C.C.P.). Arbitration clauses are found in a wide variety of agreements: product or service contracts, employment contracts, collective agreements, commercial leases and arrangements, construction contracts, and franchise agreements.
By signing such a clause, you agree in advance to use arbitration rather than the courts in the event of a dispute. That is why it is essential to read your contracts carefully before signing. It is a safeguard that ensures a fast, effective, and tailored resolution to your dispute.
IS ARBITRATION THE RIGHT OPTION FOR YOU?
Arbitration is not the same as mediation (which seeks mutual agreement) or court proceedings (which are public and state-administered). It is a private choice, often faster and more specialized, with a decision just as binding as a court judgment.
| Court | Arbitration | |
| Decision | By a judge — imposed on the parties | By the arbitrator — final and binding |
| Third party | State-appointed judge | Neutral arbitrator chosen by the parties |
| Binding nature | Yes — enforceable judgment | Yes — final and enforceable award |
| Right of appeal | Yes — Court of Appeal | Very limited (procedural defect, public order) |
| Confidentiality | None — public hearing | Yes — proceedings and award are private |
| Approximate cost | High — $10,000 to $50,000+ | Moderate to high — shared fees |
| Typical duration | 1 to 5 years | A few months |
WHERE TO START ?
FISET Légal is a firm specializing in condominium and real estate law, with lawyers accredited in mediation and arbitration. We have the expertise to assess your situation and guide you toward the optimal solution — fast, confidential, and in your best interests.
Arbitration is a strategic choice — private, fast, and specialized. Good preparation makes all the difference.