Case number: 37
Article number: model arbitration law / 36(1)(b)(ii)
Thessaurs issue:
Country of decision: Canada
Year of decision: 1993
Type of decision: Judicial decision

Case 37: MAL 36(1)(b)(ii)
Canada: Ontario Court, General Division (Eberle J.) 12 March 1993
Arcata Graphics Buffalo Ltd. v. Movie (Magazine) Corp.
Original in English
Unpublished

In order to refuse to enforce an award as contrary to public policy (article 36(1)(b)(ii) MAL) the award must be contrary to
the morality of the community of the enforcing State.

The arbitral award in question included interest at the rate of 1.5% per month with no annual interest rate. This violated s. 4 of
Canada's Interest Act which imposes limits on interest rates not expressed annually. The respondent argued that to give force
to this provision would be contrary to public policy and thus contrary to article 36(1)(b)(ii) MAL enacted by the International
Commercial Arbitration Act, Revised Statutes of Ontario, 1990, c.1.9.

The court adopted the principle that to refuse to enforce an award pursuant to article 36(1)(b)(ii) MAL the award must be
contrary to the essential morality of the state in question. The court upheld the award.