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10 Reasons Why Americans Should Arbitrate in Canada

By Gerry Ghikas

Choosing the right place to arbitrate disputes concerning international commercial transactions is of fundamental importance. The choice has significant legal and practical implications. Fortunately for American corporate counsel and their clients, an ideal place of arbitration lies close at hand, just north of the 49th parallel. Canada should be the preferred place of arbitration for U.S.-based organizations involved in international commercial disputes.

Arbitration is not a panacea for all the perceived ills of litigation. But, despite anecdotal “horror stories” about arbitrations that have gone awry, the arbitral process does have many, very real, potential benefits. In the context of international transactions, arbitration allows for dispute resolution in a neutral forum by a decision-maker of neutral nationality, denying either party any “home court advantage”, and, generally, arbitration awards can be enforced abroad more easily than judgments of domestic courts. The choice of an appropriate place of arbitration is the key to realizing these benefits.

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