International arbitration: a strategic alternative to international commercial disputes

In a globalized world where commercial transactions transcend borders, international commercial disputes are becoming commonplace. International arbitration offers an interesting solution for resolving such situations.

We provide everything you need to know about this legal option.

What is arbitration in Quebec?

International arbitration is an effective and strategic method of resolving international commercial disputes. Unlike other Canadian provinces that have adopted the UNCITRAL (United Nations Commission on International Trade Law) Model Law, Quebec incorporates the principles of this law into its Civil Code and Code of Civil Procedure.

This legal framework ensures predictability and consistency in the handling of disputes. Quebec is home to several arbitration institutions, including the Institut de médiation et d’arbitrage du Québec (IMAQ) and the Canadian Commercial Arbitration Centre (CCAC).

How does it work?

Parties involved in an international dispute choose neutral arbitrators to hear their case. It is strongly recommended to consult an international arbitration lawyer for :

  • understand procedures,
  • preparing your file,
  • represent your interests at arbitration.
  • advise you on the best arbitration options.

A Quebec international lawyer with expertise in both international commercial litigation and international arbitration can propose a comprehensive strategy to his client. Montreal-based Sabbagh is an excellent reference in these fields.

Who is this procedure for?

It can be beneficial for :

  • construction contractors,
  • owners of SMEs with international operations,
  • those working for an NGO,
  • representatives of multinationals,
  • international trading partners,
  • foreign investors.

Companies are advised to include arbitration clauses in their international contracts as a preventive measure, which can help them avoid the high costs associated with future legal proceedings.

What are the main benefits?

The major advantages of this legal procedure are :

  • confidentiality,
  • neutrality,
  • flexibility,
  • rapidity.

International arbitration: a fast, flexible alternative to traditional legal disputes

Arbitration proceedings are often faster and more flexible than traditional court litigation, enabling more efficient dispute resolution. International arbitration offers a private alternative where the parties can choose the arbitrators and the type of proceedings, an important strategic aspect in transnational disputes. Unlike international commercial disputes, which must comply with the strict rules of national jurisdiction, arbitration offers greater flexibility.

As a result of the New York Convention signed in 1958, arbitration awards rendered in Quebec are generally recognized and enforced in more than 160 countries, making it easier to enforce decisions than judgments in conventional litigation. Arbitration is also more economical in certain contexts, and avoids lengthy public trials sometimes held abroad.

Sabbagh Associé Inc. lawyers are highly qualified to advise and represent clients in arbitration and traditional litigation.

NOTE: This article does not constitute legal advice or a legal opinion. It is intended solely to inform readers of certain aspects of the laws governing international arbitration in Quebec.