Ontario Superior Court of Justice in reasons released on October 1, 2010, in Universal Settlements International Inc., v. Duscio, 2010 ONSC 5438 (CanLII) granted the moving party’s application to stay the enforcement of an arbitration award, pending the disposition of an application to set aside the arbitration award.

The parties agreed that the test on a motion to stay an award by a private arbitrator pending disposition of an application to set it aside should be the strong prima facie test.

The Court found that:

(a)    the moving party satisfied the test and “there is good reason to doubt the correctness of the arbitrator’s actions”; and

(b)   the funds were in jeopardy of being disbursed and, therefore, the moving party “would be prejudiced were the funds to be disbursed as contemplated prior to the determination” of the moving party’s application to set aside the arbitrator’s decisions.

Citation: Universal Settlements International Inc., v. Duscio, 2010 ONSC 5438 (CanLII)

David Alderson, LL.B, LL.M (Lond.)

Masha Loftus, M.A., J.D

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