ONTARIO – Arbitration – On an application under s. 45(1) of the Arbitration Act, 1991, the Court refused leave to set aside an arbitral award that granted a 50% constructive trust on the basis of good conscience, without a quantified finding of unjust enrichment or any wrongful act. The arbitrator’s imposition of a constructive trust on the basis of good conscience was not an error of law.
Cases
ONTARIO – Corporations – Rectification of corporate resolutions is an equitable remedy that is available to correct a document that fails to accurately record the parties' true agreement. The remedy is not available to correct an improvident bargain or fill a gap in the parties’ true agreement. Rectification is only available where the executed documents fail to accurately record the parties’ agreement.
ONTARIO – Arbitration – Principles of Natural Justice – The principles of natural justice and sections 19 and 46(1) of the Arbitration Act, 1991 require parties to be given the opportunity to make submissions. They do not require that parties be afforded a second opportunity to make submissions after they expressly declined the first opportunity to do so.
ONTARIO – Corporations - Piercing the Corporate Veil - If corporate entities are completely dominated and controlled by individual debtors and if the corporation is being used as a shield for fraudulent or improper conduct, the court may pierce the corporate veil.
ONTARIO – International Arbitration–Model Law- Reasonable apprehension of bias and duty to disclose a second appointment. A finding of a failure to disclose the second engagement is germane but not determinative of whether an arbitral award should be set aside for reasonable apprehension of bias.
ONTARIO – Settlement – Settling parties must immediately disclose a partial settlement if the settlement changes entirely the litigation landscape in a way that significantly alters the dynamics of the litigation. Failure to do so is an abuse of process for which a stay of the action against the non-settling defendants is the remedy.