Important Victory in the Canadian Royalties Case

Langlois Kronström Desjardins is pleased to announce an important litigation victory on behalf of its long-time client, Canadian Royalties Inc.

On September 22, 2010, the Superior Court of Quebec homologated an arbitration award rendered in Canadian Royalties’ favour on April 1, 2009, after a lengthy legal battle culminating in a long-term trial raising complex issues in the mining sector. The decision of the court is the first judgment that interprets and applies the findings of the Court of Appeal in the leading case Coderre v. Coderre, in which the Court of Appeal annulled an arbitration award because the arbitrator had effectively re-written the contract. In the present case, the Honourable William Fraiberg J.S.C. adopted the position advanced Langlois Kronström Desjardins to the effect that a commercial arbitrator was not bound by the letter of the contract, but could, like a judge, interpret the agreement with a view to enforcing the common intention of the parties.

Langlois Kronström Desjardins also prevailed in its arguments concerning the limited scope of review of the court after a final arbitration award has been rendered, the sufficiency of an arbitrator’s reasons, and whether a commercial arbitrator can issue injunction-type conclusions.

Dimitri Maniatis, Stefan Chripounoff, Vincent de l’Étoile, Rebecca St-Pierre, and David Drouin-Lê acted for Canadian Royalties in this matter.